HDFC Bank on Thursday said it has raised Rs 739 crore by issuing the rupee-denominated masala bonds in the overseas markets. HDFC Bank has issued and allotted rupee-denominated bonds overseas on September 30, 2021, the lender said in a regulatory filing.
The private sector lender will use the proceeds from the issue for banking activities.
The subordinated additional tier I bonds are compliant with Basel III norms.
The perpetual bonds, which are unrated and unsecured, carry a coupon rate of 7.55 per cent.
The notes (bonds) will be listed on the India International Exchange (IFSC) Ltd and NSE IFSC, it said.
Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.
The rupee-denominated bonds, popularly known as “masala” bonds are instruments that are issued outside India, not in the local currency but the Indian rupee.
In November 2016, the RBI had allowed banks to raise funds by floating the rupee-denominated bonds in overseas markets as part of an additional avenue to raise long term funds. Shares of HDFC Bank closed at Rs 1,595.50 apiece on BSE, up 0.14 per cent from the previous close.
HDFC Bank and HDFC Securities invested USD 1 million (about Rs 7.4 crore) in Borderless Softtech, which runs global investment platform Stockal, as part of Pre-Series A funding. Borderless Softtech is a subsidiary of US-based Borderless Investing Inc.
This partnership will widen the company’s subscriber base by expanding growth opportunities to allow Indian investors to get access to over 5,500 US-listed companies fractional stocks and ETFs, according to a release issued by Stockal on Thursday.
The company is planning to utilise the funding to turbocharge its growth, making it a platform of choice for Indian investors.
“This funding will enable thousands of Indian investors to get exposure to opportunities offered by the global markets as we further expand our capabilities to markets in South-East Asia and Europe,” Vinay Bharathwaj, Co-CEO and co-founder of Stockal, said.
Smita Bhagat, Country Head, HDFC Bank, said the funding decision was based on the strength and resilience the Stockal platform has shown in India, especially in the past few months.
Borderless Investing Inc’s brand Stockal has revolutionised the US investments space by offering seamless digital trading solutions to Indian investors since its inception.
In terms of volumes, Stockal processed about USD 550 million in transactions during this financial year and by March 2021, the platform processed more than USD 50 million in monthly transactions. PTI SP BAL BAL
Home loans are set to get a boost this festive season as easing Covid curbs give buyers confidence and rates stay rock bottom due to ample liquidity
Buyers confident about the economy are set to cash in on low rates to buy homes.
Housing sales have jumped over two-fold during the July-September period at 62,800 units across seven major cities on better demand driven by low mortgage rates and hiring in IT/ITeS sector, according to property consultant Anarock.
Sales of residential properties stood at 29,520 units in the year-ago period and 24,560 units in the previous quarter.
Housing prices appreciated by 3 per cent across the seven cities to Rs 5,760 per square feet in Q3 of 2021 calendar year from Rs 5,600 per square feet in Q3, 2020.
The ongoing WFH (Work For Home) culture continues to influence residential sentiment on two major fronts – overall housing demand and unit sizes.
About 80 per cent of respondents to a survey by consultant JLL expected to make a purchase in the next three months.
Fierce competition
Competition among lenders in the home loan space is also set to boost home loans.
Kotak Mahindra Bank is offering home loans at a lower rate of 6.50 per cent is a festive period offer available only for two months till November 8, and the lowest offering is for those having the highest credit scores coming from the salaried segment.
In the past, its rivals which include HDFC and SBI, have responded to rate cuts by slashing their own offering. The rate cut comes at a time when demand for home loans is falling in the country and may spark similar offers from rivals.
Large banks like the State Bank of India already offer home loans at as low as 6.65 per cent and 6.75 per cent, respectively, while the interest rates for HFCs is between 7.45 per cent and 10 per cent.
Nirmal Bang Institutional Equities said in a note, “The demand momentum seen in housing loans last year has tapered off and organic growth for the housing finance industry has been softening,” the brokerage house said. The organic growth in the home loan segment for large banks has been slowing over the last 45-50 days.
Even as lenders jostle for home loan pie, the assets under management of the segment across banks and non-banks are likely to grow by 15% over the next three to five years, according to ICICI Securities.
This would be on the back of the rise in disbursements and improved affordability.
“Factors such as low interest rates, stamp duty cut, benign real estate prices, etc. have improved affordability to own a house. ‘Work from home’ has kindled incremental housing demand. Construction too was not adversely impacted during the second wave,” the brokerage said.
Home loan growth fell to 8% over the previous three financial years as compared to 17-18% earlier while disbursements fell to Rs 5.3-5.5 lakh crore due to the pandemic. However, it has now risen to a run-rate of Rs 7-8 lakh crore.
Inter-creditor agreements (ICAs) for all the assets identified for transfer to the National Asset Reconstruction Company (NARCL) in the first round have been signed, State Bank of India (SBI) chairman Dinesh Khara told FE in an interview.
In terms of the shareholding of NARCL, private-sector banks have come forward and they are in the process of obtaining the requisite approvals in order to invest in the entity, Khara said.
“So they are fully on board and in all those accounts where ICAs have been signed, there is a consensus among banks that all such accounts will move into NARCL,” Khara said, adding that irrespective of ownership, assets would get aggregated. “All those who have signed ICAs would be happy to have the assets aggregated and move them towards resolution,” he said.
An ICA is an agreement signed between the lenders to a company as a sign of their commitment to ensure a common resolution of the stress built up in that company.
The NARCL has been set up with a paid-up capital of Rs 149 crore, all of which has come from eight public-sector banks. Banks are understood to have identified 22 accounts with a total outstanding of Rs 89,000 crore for transfer to the NARCL in the first tranche. Eventually, the bad bank is expected to acquire assets worth Rs 2 lakh crore from lenders. Sector analysts say that the aggregation of the exposures of several lenders is the chief advantage of the NARCL.
“The chances of resolution improve when you club together all the piecemeal exposures of each bank into a single asset. The assets identified in the first tranche are very old ones where private banks have anyway made an exit. So aggregation shouldn’t face too many challenges,” said an analyst.
“One of the challenges for resolution was that each bank had a different kind of charge attached to the same asset. Aggregation through the NARCL takes care of that problem,” said Ashvin Parekh, managing partner, Ashvin Parekh Advisory Services (APAS). “We must hope now that the NARCL is steered competently by the management so that there is actual resolution of stress,” he added.
Shareholders approved the ‘Profit &Loss Account’ for the year ended and the re-appointment CK Gopinathan as a director.
Shareholders of Dhanlaxmi Bank have rejected the appointment of statutory central auditors in the annual general meeting (AGM) held on Wednesday, the bank said in a regulatory filing. Incidentally, the Kerala High Court has refrained the bank from concluding the AGM and has adjourned it to a day after one month from September 29th. The shareholders also rejected the resolution of authorizing the board of directors to appoint and fix the remuneration of branch auditors.
In a show of strength and defiance to the current board, the shareholders passed two resolutions while voting against the other two. Shareholders approved the ‘Profit &Loss Account’ for the year ended and the re-appointment CK Gopinathan as a director.
According to the regulatory filing, 65.44% of the shareholders present in the AGM voted against the proposal to appoint P B Vijayaraghavan & Co, Chartered Accountants, as statutory auditors and appointment of branch auditors. The order by the HC came following a writ petition filed by KN Madhusoodanan, a shareholder of the company, P Mohanan and Prakash DL, seeking a direction to the respondents — the RBI and Dhanlaxmi bank — to discharge their statutory responsibilities under Section 160 of the Companies Act to inform the members about the candidature of the petitioners for the office of the director as mandated under Section 160(2) of the Companies Act. Sherry Samuel Oommen, a corporate lawyer, told FE that it would have augured well for the shareholders of Dhanlaxmi to adjourn the AGM in its totality.
“The Ministry of Corporate Affairs in a circular in 1974 had permitted companies to adjourn the AGM where accounts were not ready for laying at the concerned AGM. Perhaps, in the interests of the public, the matter concerning adoption of accounts and appointment of auditors could have been adjourned to the ensuing AGM. I am quite certain that this matter would be further litigated in the next month,”he added.
Sharekhan sees a good upside in the stock to Rs 800, as against the current market price of Rs 607, which implies an upside potential of 31%.
According to Sharekhan, Laurus is fortifying its position in the FD and synthesis segments, strengthening its presence in non- ARV space and growing in new area of biologics.
The company is building new capacities that would support the robust demand and also propel growth in the coming years. Emerging opportunities from patent expiry of drugs in areas of anti-diabetes and cardiology offer significant potential for Laurus.
“The sturdy growth prospects that are well supported by capacity expansion plans, the management has targeted for a $1bn revenues by FY2023, thus translating in to a strong growth trajectory. Diversification of revenue base and plans to enter new therapeutic areas of cardiology and anti-diabetes would also be the key growth drivers. At the current market price, the stock trades at 24.8 times and 19 times its FY22E and FY23E EPS respectively. Further the stock price has corrected by 16% from its highs and this provides a good entry point for investors. As the concerns are overdone, we re-iterate Buy recommendation on the stock of Laurus with an unchanged price target of Rs. 800,” Sharekhan has said.
Buy Gland Pharma, says Sharekhan
Sharekhan has set a price target of Rs 4,400 on the stock of Gland Pharma, as against the current market price of Rs 3,700.
According to Sharekhan, Gland Pharma has a well diversified product portfolio, strong product pipeline would drive the Core markets performance, while expanding geographic footprint with plans to enter China bodes well from growth perspective.
“A confluence of multiple growth drivers is expected to boost Gland Pharma’s overall performance. A well-diversified and sturdy product portfolio, expansion of geographic footprint with a focus on entering the high potential China markets (leveraging parent company’s strength), sustained opportunities from Sputnik vaccine, and foray in to the biosimilar CDMO space would be the key growth drivers for Gland. A sturdy Rs. 770 crore capex plan spread across FY2022-FY2023E and a strong compliance track record coupled with established customer relations are the key positives and provide ample growth visibility,” the brokerage has said.
Good growth in core markets for Gland
According to Sharekhan, Gland’s core markets consist of the US, Europe, Australia and Canada and account for 68% of FY2021 revenue. A well-diversified product portfolio, strong product pipeline and focus to expand geographic footprint are the growth levers for Gland. After a positive response from new markets entered in such as Singapore, Israel, Saudi Arabia, and CIS countries, Gland aims to enter the high-potential China markets by leveraging its parent company’s strengths.
“Structurally being an established player in injectables, Gland Pharma is set to benefit from the rising preference for injectables. At the current market price, the stock is of Gland trading at a P/E multiple of 46.2x/30x, its FY2022E/FY2023E EPS, thus pointing towards room for expansion. The stock price has corrected 14% from its highs and this provides a good entry point for investors. We reiterate our Buy recommendation on the stock with unchanged price target of Rs. 4,400,” the brokerage has said.
Disclaimer
The investment ideas are picked from the brokerage report of Sharekhan. Investors should note that investing in stocks is risky and neither the author, nor Greynium nor the brokerage would be responsible for losses based on a decision from the above article.
“During Covid, demand has certainly got affected and hopefully with the revival of the economy, demand should be back on track.” (File image)
Corporate demand has to pick up in order for credit growth to pick up, Dinesh Khara, chairman, State Bank of India, tells Shritama Bose in an interview. There has been a tendency to misprice risk amid an excess of liquidity, he adds. Edited excerpts:
Credit growth has become a serious problem for the banking sector. What would it take for it to pick up from the current 6-6.5% levels? The credit growth is also a reflection of the real economy. There are a couple of reasons which we have seen in the past. Almost about Rs 2 lakh crore worth of deleveraging has happened in the corporate sector and naturally, it has impacted credit growth. So even if we are growing at 12-14% in retail, it will not show up in the banking sector credit growth if corporate credit doesn’t grow.
We have also observed that for large corporates sanctioned limits have remained unutilised to the extent of about 30%. Similarly, for the mid-corporate sector, the credit limits have remained unutilised to the extent of about 25%. Even for term loans, etc that we sanction, the unutilised limits are as high as 25-30%. During Covid, demand has certainly got affected and hopefully with the revival of the economy, demand should be back on track.
In August, the government had said there would be a fresh round of credit outreach programmes in October. How are you planning that? We are all working on the nitty-gritties of the outreach programme and very soon, we should be in a position to announce it under the aegis of IBA (Indian Banks’ Association).
The focus would be to encourage people to borrow and to generate demand with the convenience of the funds available in the form of loans. It will be for all segments.
Pricing has hit rock-bottom in the wholesale market. How are you strategising in such a market? Naturally, one has to decide up to what level one should go. That is something on which we have already made up our mind. Pricing has multiple components — the cost of resources, the risk premium we assign, based on which we arrive at the price that should be offered. We are quite cognisant of the various price dynamics and accordingly we are quoting prices which should take care of all stakeholders’ interests.
What is your outlook on liquidity? Is it hurting margins? The system is still in a surplus mode. For the foreseeable future, we don’t see any challenge in terms of liquidity. There is ample liquidity to take care of the credit needs of customers. I can very well see that there is some kind of mispricing of risk because of the excess liquidity, but eventually it’s a call taken by each bank based on their thinking around balance sheet growth. Those would be the reasons for them going for a particular kind of pricing.
How persistent is the Covid-induced stress in small accounts? I would give the example of the first quarter of the current financial year when there was a containment announced for various cities and there were mobility restrictions for almost two months. That affected the ability of our people to carry out collections. But effective June 16, when the mobility restrictions were eased, our employees could reach out to customers and we saw a significant pullback. Collection efficiency has improved for the system as a whole as also for us. It isn’t weighing too much on our mind, but we need to be alert and active to ensure that the collection efficiency is the best.
With the high competition in the home loan segment, are you ensuring credit quality? The lending is being done based on credit scores, which are quite reliable. Even otherwise, we have got sufficient margin in our loan-to-value, which takes care of the volatility seen in prices. So, we are not too worried about the risk complexion of the portfolio with the reduction in interest rates.
What are your plans for Yono and how much of the business is coming from there? We have strengthened Yono over a period of time. It is not just for retail, we have Yono Business, Yono Agri and Yono Global. We are working on all these components and trying to see how best we can make the journeys easier for the customer and make the app more and more intuitive. During the current financial year, we have disbursed about Rs 9,000 crore worth of pre-approved personal loans to about 4.5 lakh-odd customers. We have sanctioned 8,000-odd home loans aggregating to about Rs 6,000 crore and more than 10 lakh agri gold loans aggregating to over Rs 15,000 crore. We have reviewed Kisan credit cards worth Rs 5,000 crore to about 3.5 lakh customers with the help of Yono. We have sold mutual funds worth Rs 4,700 crore and 1.28 lakh life insurance policies. We’ve also sold 21.72 lakh personal accident policies aggregating to Rs 123 crore worth of premium.
Welcome to the refurbished site of the Reserve Bank of India.
The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.
With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.
The site can be accessed through most browsers and devices; it also meets accessibility standards.
Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.
Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.
A dividend is the part of the company’s profits which it distributes among its shareholders. While the net profit that is not distributed as dividend forms the free reserves and surplus of the company.
Investors gain from investing in dividend yield stock in 2 ways:
Stock price appreciation in due course
Possibility of regular pay out as dividend based on the stock’s dividend history
Also, a good dividend history assures an investor and provides confidence that the scrip would do reasonably well in the future course.
Hence as dividend yield stocks tend to be lucrative for investors here is one stock that is soon to offer Rs. 130 per share as dividend (segregated as Rs 90 -special dividend and Rs. 40 final dividend). Procter and Gamble Health in an exchange filing on August 26 notified that the Board of Directors of the Company have recommended a final dividend of Rs. 130 per equity share, for the financial year ended June 30, 2021, which includes a one-time special dividend of Rs. 90 per equity share. Importantly this dividend shall be paid between November 15, 2021 and December 08, 2021, on approval of the Members at the 54th Annual General Meeting.
Meanwhile, the company has also sent a communication to shareholders in respect of TDS deduction on dividend income from P&G Health- final dividend 2020-21. Note the ex-date for the both the dividend types is November 2, 2021. Ex-dividend date is usually one day prior to the record date and on this day the price of the equity share of the company gets adjusted for the dividend pay-out.
The stock’s dividend yield considering the last traded price of Rs. 5403.6 is 2.41 percent.
Past dividend history
Announcement Date
Ex-Date
Dividend Type
Dividend (%)
Dividend (Rs)
15-09-2020
18-11-2020
Final
420
42
16-09-2020
18-11-2020
Special
1880
188
27-02-2019
23-05-2019
Final
240
24
28-02-2019
23-05-2019
Special
4160
416
22-02-2018
21-05-2018
Final
150
15
27-02-2017
25-05-2017
Final
110
11
29-02-2016
22-04-2016
Final
75
7.5
05-02-2015
30-03-2015
Final
60
6
Procter and Gamble Health was established in the country in the year 1967 as one of Merck’s Asian subsidiaries. The company is amongst the country’s largest VMS companies engaged in manufacturing and marketing of over-the-counter products, vitamins, minerals, and supplements products for a healthy lifestyle and improved quality of life.
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Welcome to the refurbished site of the Reserve Bank of India.
The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.
With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.
The site can be accessed through most browsers and devices; it also meets accessibility standards.
Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.
Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.
Financial Express is now on Telegram. 
