Reserve Bank of India – Press Releases
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Ajit Prasad Press Release: 2021-2022/1240 |
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Sundaram Finance raises ₹200 cr in third tranche of High Yield Secured Real Estate Fund
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Buoyed by the earlier performance, Sundaram Finance has raised ₹200 crore in the third tranche of its High Yield Secured Real Estate Fund within a month of its launch and targets mopping up ₹700 crore in coming days.
The fund will seek to use its focused and robust credit policy to create risk-adjusted returns and periodically distribute cash to reduce risks and provide a current income model for its investors.
Risk mitigation strategies
Karthik Athreya, Head of Strategy, Alternate Credit, said the funds have significant risk mitigation strategies that are differentiated in the market in terms of underwriting methods and diligence focus.
Sundaram Finance Holdings: Why you should accumulate this oft-ignored small-cap stock
The real estate space is exhibiting growth — sales numbers reaching pre-Covid levels, prices remain in line in the company’s key markets and supply is managed. The growth is aided by the low interest rates offered by banks, attractive pricing, and incentives offered by developers, he said.
ESG compliance
Harsha Viji, Executive Vice-Chairman, Sundaram Finance, added, “Our focus across various investment strategies, going forward, is to also transition our portfolio into ESG compliance over the next few years, reflecting the strong vision of Sundaram Group as a responsible corporate citizen.”
Sundaram Finance eyes ‘decent’ growth in FY22 amid limited stress
The third series of AIF Cat II funds will invest in senior secured credit of real estate developers based out of South India. Fund III follows the better performance of the earlier two similar funds that raised over ₹840 crore and built a diversified asset book of 18 investments to date that are generating 18-20 per cent gross IRRs.
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3 Tax Savings Schemes That Are Attractive
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Public Provident Fund (PPF)
Investment in PPF is best among the tax saving scheme u/c 80C. PPF is best for taxpayer who wants to put their money in funds for retirement savings. It promises to generate a return that is mostly in line with inflation. PPF could start with a deposit of Rs 500 per financial year with a maximum deposit of Rs 150000 lakh. 15 years is the maturity period of the PPF. However, after 5 years the amount can be withdrawn if certain conditions are met. Without any doubt, PPF is the best investment scheme when it comes to tax saving. The interest under the PPF is also exempt from tax, which is another big benefit. The only drawback for the scheme is that one has to hold for the longer term, though the interest is fantastic on the same.
5 year Bank Fixed Deposit
This is among the best tax-saving investment scheme offered by the banks. 5 yeas bank Fixed Deposit offers high return and saves tax as well. This scheme comes under section 80C of the Income Tax Act, 1961. In this, scheme, the amount invested cannot be withdrawn before 5 maturities. Although there are various types of FDs available in this tenure range, this one is best for tax saving. Various banks offer this scheme but the interest offered by the Yes Bank is highest among all that is 6.75% for a period of 5 years. The interest earned on the investment is eligible for tax exemption under section 80C.
Equity Linked Saving Scheme (ELSS)
ELSS is one of the tax-saving investment schemes under section 80C of the Income Tax Act, 1961. ELSS allows you to receive a tax credit of up to Rs 1,50,000 a year and save up to Rs 46800 in a financial year. It has the shortest lock-in period of all the options, at just 3 years. During the lock-in period, the dividend can be used to earn a consistent return. The capital gains and returns up to Rs 1 lakh are tax-free and after that LTCG (Long-Tern Capital Gains) tax is applicable at 10%. The deduction can be simply claimed under section 80C of the Income Tax Act, 1961. ELSS is one of the best tax-saving investment schemes for any taxpayer who is planning to save tax with a higher return.
Other tax saving scheme
Other than these 3 attractive tax-saving investment schemes, various other schemes are there that offer a good return and save tax. United Linked investment Pla, Premium Life Insurance, National Pension Scheme, and Senior Citizen Savings Scheme (SCSS) are a few of them.
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Kerala to send delegation to Centre over RBI guidelines on cooperative sector, BFSI News, ET BFSI
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The Kerala Cabinet on Wednesday expressed deep concern over the Reserve Bank of India‘s statement cautioning the public against cooperative societies using ‘bank’ in their names as well as accepting deposits from people who are not their members.
The Cabinet meeting, held under Chief Minister Pinarayi Vijayan here, has decided to send a delegation to meet all those concerned at the Centre to see that similar statements should not be put out as they create panic in the state, where the cooperative sector is flourishing.
State Cooperative Minister V.N. Vasavan has already gone on record to state that this move will “destroy” the flourishing cooperative sector in the state and it will be dealt with strongly using all means like discussions with the Centre, holding protests and considering seeking legal redress.
The RBI order that came out on Tuesday stated that after the amendment in the Banking Regulation Act, 1949, effective September 29, 2020, cooperative societies cannot use the words “bank”, “banker” or “banking” as part of their names, except as permitted under the provisions or by the RBI.
Union Home Minister Amit Shah also holds the portfolio of the Cooperative Minister. The Ministry was created in July this year with the aim to strengthen the cooperative movement in the country.
–IANS
sg/svn/bg
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Govt of India, Asian Development Bank sign $300 million loan to improve primary health care in the country, BFSI News, ET BFSI
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NEW DELHI: The government of India (GOI) and Asian Development Bank (ADB) has signed a 300 million dollar loan to improve primary health care in urban areas of 13 states that will benefit over 256 million urban dwellers including 51 million from slum areas.
As per an official release by the Ministry of Finance, “Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance, signed for the GOI the agreement for Strengthening Comprehensive Primary Health Care and pandemic preparedness in Urban Areas Program while Takeo Konishi, Country Director of ADB’s India Resident Mission, signed for ADB.”
Mishra said, “the programme supports the Government of India’s key health initiatives – Ayushman Bharat Health and Wellness Centres (AB-HWC) and Pradhan Mantri Atmanirbhar Swasth Bharat Yojana (PM-ASBY) – which has been renamed as Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) – by expanding availability and access to quality primary health care services particularly for vulnerable populations in urban areas.”
Ayushman Bharat programme, launched in 2018, aims to improve access to comprehensive primary health care as a key strategy to achieve universal health coverage in India. With the spread of the coronavirus disease (Covid-19) pandemic that put additional pressure on the country’s health system, the government launched PM-ASBY later renamed as PM-ABHIM in October 2021 to adopt a long-term approach to system strengthening to prepare for future pandemics and other emergencies.
“Ensuring equitable access to non-COVID-19 primary health care is critical amid challenges posed by the coronavirus pandemic to India’s health system,” said Konishi.
The programme will be implemented in urban areas across 13 states: Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Telangana, and West Bengal.
Besides the pandemic response, interventions through the program promote increased utilization of urban HWCs with the provision of comprehensive primary health care packages including non-communicable diseases and community outreach services such as awareness-raising activities on health care options, particularly for women.
Delivery and health information systems for primary health care will be upgraded through digital tools, quality assurance mechanisms, and engagement and partnership with the private sector.
The programme is supported by a 2 million dollar technical assistance grant from ADB’s Japan Fund for Poverty Reduction to provide support for programme implementation and coordination, capacity building, innovation, knowledge sharing and application of scalable best practices across the healthcare system.
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DCB Bank Modifies Interest Rates On Fixed Deposits: Now Get Up To 6.45%
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DCB Bank FD Rates
Regular customers will now receive a 4.35 percent interest rate on single deposits of less than Rs.2 crore maturing in 7 to 90 days. DCB Bank is currently providing 5.05 percent and 5.25 percent interest rates on term deposits maturing in 91 days to less than 6 months and 6 months to less than 12 months. The bank is providing the general public an interest rate of 5.55 percent and 5.30 percent on deposits maturing in 12 months and more than 12 months to less than 15 months, respectively.
Regular customers will now get a 5.50 percent interest rate on deposits maturing in 15 months to fewer than 700 days. DCB Bank is now promising an interest rate of 5.95% and 5.50% to the general public on their deposits maturing in 700 days and more than 700 days to less than 36 months. On single deposits maturing in 36 months to 120 months, regular customers will get an interest rate of 5.95%.
| Tenure | Deposit Interest Rate (percent per annum) | Annualised Yield (% per annum) |
|---|---|---|
| 7 days to 14 days | 4.35% | 4.35% |
| 15 days to 45 days | 4.35% | 4.35% |
| 46 days to 90 days | 4.35% | 4.35% |
| 91 days to less than 6 months | 5.05% | 5.05% |
| 6 months to less than 12 months | 5.25% | 5.34% |
| 12 months | 5.55% | 5.67% |
| More than 12 months to less than 15 months | 5.30% | 5.41% |
| 15 months to less than 18 months | 5.50% | 5.65% |
| 18 months to less than 700 days | 5.50% | 5.73% |
| 700 days | 5.95% | 6.22% |
| More than 700 days to less than 36 months | 5.50% | 5.89% |
| 36 months | 5.95% | 6.46% |
| More than 36 months to 60 months | 5.95% | 6.87% |
| More than 60 months to 120 months | 5.95% | 8.05% |
| Source: Bank Website, (with effect from 22nd November 2021) |
DCB Bank FD Rates For Senior Citizens
Senior citizens will continue to get an additional rate of 0.50% on their deposits of less than Rs. 2 Cr maturing in 7 days to 120 months. Here are the new interest rates on fixed deposits of DCB Bank that senior citizens will get respectively.
| Tenure | Rate for Senior Citizens (% per annum) | Annualised Yield (% per annum) |
|---|---|---|
| 7 days to 14 days | 4.85% | 4.85% |
| 15 days to 45 days | 4.85% | 4.85% |
| 46 days to 90 days | 4.85% | 4.85% |
| 91 days to less than 6 months | 5.55% | 5.55% |
| 6 months to less than 12 months | 5.75% | 5.86% |
| 12 months | 6.05% | 6.19% |
| More than 12 months to less than 15 months | 5.80% | 5.93% |
| 15 months to less than 18 months | 6.00% | 6.18% |
| 18 months to less than 700 days | 6.00% | 6.28% |
| 700 days | 6.45% | 6.77% |
| More than 700 days to less than 36 months | 6.00% | 6.47% |
| 36 months | 6.45% | 7.05% |
| More than 36 months to 60 months | 6.45% | 7.54% |
| More than 60 months to 120 months | 6.45% | 8.96% |
| Source: Bank Website, (with effect from 22nd November 2021) |
DCB Bank NRO FD (Non-Resident Ordinary Fixed Deposit) Interest Rates
The bank has also altered its interest rates on Non-Resident Ordinary Fixed Deposits of less than Rs. 2 Cr. Following are the recent interest rates applicable on Non-Resident Ordinary Fixed Deposits by DCB Bank.
| Tenure | Deposit Interest Rate (% per annum) | Annualised Yield (% per annum) |
|---|---|---|
| 7 days to 14 days | 4.35% | 4.35% |
| 15 days to 45 days | 4.35% | 4.35% |
| 46 days to 90 days | 4.35% | 4.35% |
| 91 days to less than 6 months | 5.05% | 5.05% |
| 6 months to less than 12 months | 5.25% | 5.34% |
| 12 months | 5.55% | 5.67% |
| More than 12 months to less than 15 months | 5.30% | 5.41% |
| 15 months to less than 18 months | 5.50% | 5.65% |
| 18 months to less than 700 days | 5.50% | 5.73% |
| 700 days | 5.95% | 6.22% |
| More than 700 days to less than 36 months | 5.50% | 5.89% |
| 36 months to 120 months | 5.95% | 8.05% |
| Source: Bank Website, (with effect from 22nd November 2021) |
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Reserve Bank of India – Press Releases
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Ajit Prasad Press Release: 2021-2022/1239 |
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CARE Ratings revises ratings of AT I Bonds of 4 public banks
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CARE Ratings has revised the ratings of AT I Bonds of four public sector banks including Canara Bank, Indian Bank, Punjab National Bank and Union Bank of India. It considered the strengthening in the overall credit profile of the banks including improvement in capital cushions over the minimum regulatory requirement, improvement in both profitabilities as well as the distributable reserves position.
While rating instruments are issued by public sector banks (PSB), CARE Ratings assigns high weightage to support from the Government of India (GoI) due to its majority shareholding and the systemic importance of these banks in the Indian financial system.
Considering the significant size and financial franchise of the banks, a default by a PSB would have material economic consequences for the government as well as regulators, hence, the importance of PSBs for GOI and the economy as a whole cannot be undermined. Additional Tier I (AT I) Bonds are perpetual debt instruments that banks are allowed to raise under the Basel III capital framework and form a part of Tier I capital for banks. These instruments have several unique features, which make them very different from other types of debt instruments and provide them equity.
The issuing bank has full discretion over coupon payments at all times on these instruments. Therefore, if a bank does not have sufficient distributable reserves to service the coupon on AT I Bonds, it may not pay the coupon. These bonds also have loss-absorption features through conversion/writedown/ write-off on breach of pre-specified trigger on capitalisation requirement or at the point of non-viability (PONV) which may be decided by the Reserve Bank of India (RBI).
As per CARE Ratings’ criteria for rating of hybrid instruments issued by banks, CARE Ratings has been notching down the AT I Bonds issued by the banks by one to several notches below the Tier II Bonds rating depending on the expected adequacy of eligible reserves, cushion over minimum regulatory capital and other credit risk assessment parameters of the individual bank to factor in the additional risk in these instruments on account of several unique features.
In the last few years, PSBs have received significant government as well as regulatory support. GOI has initiated consolidation of the sector by amalgamation of relatively weaker and smaller banks into anchor banks which have gained significant scale increasing their economic and systemic importance and has further recapitalised these banks.
“With the strengthening of the resolution of NPAs under the Insolvency and Bankruptcy Code (IBC) process, the banks have seen recoveries in some of the large NPAs. The banks also have made higher provisioning on bad assets and additional provisioning in anticipation of expected losses due to Covid-19 which has increased the provision coverage ratio (PCR) and provided strength to the balance sheets of these banks,” the rating agency said.
“Further, instances of GOI and regulatory support by way of broadening of the definition of distributable reserves to include more categories of reserves as distributable reserves and allowing accumulated losses to be set-off against the share premium account which has increased the ability of PSBs to service the coupons of AT I Bonds, reiterate that the stance to extend support even to hybrid instruments. PSBs are expected to receive capital support well in advance so that the coupon payment trigger is not breached in future,” it added.
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Crypto asset investors in the country should stay calm: CoinSwitch Kuber CEO
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Ashish Singhal, Founder & CEO, CoinSwitch Kuber said on Wednesday that crypto industry is hopeful that the government will involve the industry stakeholders while drafting the bill
“At CoinSwitch Kuber, we shall follow the directions provided by the government. As of now, I urge all crypto asset investors in the country to remain calm, do their own research before arriving at a rushed conclusion. Investors should wait for a government statement on this matter and not rely on secondary sources of information,” Singhal said.
On Wednesday morning, Bitcoin’s price dropped 16.75 per cent on WazirX, Ethereum plunged 12.1 per cent, Shiba Inu dropped over 20 per cent, Dogecoin was down by over 16 per cent, Sandbox by 4 per cent and USDT or Tether by over 14 per cent.
This happened after the Lok Sabha’s summary of bills to be tabled in the winter parliamentary session released in the evening before mentioned that the government is seeking to prohibit private cryptocurrencies in the description of The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
Singhal who is also the Co-Chair of the Blockchain and Crypto Assets Council (BACC), a part of the Internet and Mobile Association of India (IAMAI) said the industry has been actively communicating with all stakeholders keeping investor protection at the forefront. “Our discussions over the last few weeks indicate there is broad agreement on ensuring customers are protected, financial system stability is reinforced and India is able to take advantage of the crypto technology revolution,” he said.
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‘Buy’ This Stock For +20% Upside In 1 Year: Sharekhan Recommends
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Target Price
The Current Market Price (CMP) of Balkrishna Industries Ltd is Rs. 2246 The brokerage firm, Sharekhan has estimated a Target Price for the stock at Rs. 2700. Hence the stock is expected to give a 20.21% return, in a Target Period of 6 months.
| Stock Outlook | |
|---|---|
| Current Market Price (CMP) | Rs. 2246 |
| Target Price | Rs. 2700 |
| 1 year returns | 20.21% |
Company performance
Balkrishna Industries Ltd. reported lower-than-expected operational performance, led by increased raw-material price and higher freight rates. Net revenue grew by 32.1% y-o-y to Rs. 2,050 crore in Q2FY2022, driven by 18.8% volume growth at 72,748 MT of tyres and 11.2% improvement in average realisation. EBITDA margin declined by 350 bps q-o-q to 25.4% in Q2FY2022 due to rise in raw-material costs and increased freight rates. As a result, EBITDA and adjusted PAT improved by 2% y-o-y and 11.1% y-o-y to Rs. 519 crore and Rs. 377 crore, respectively. The brokerage firm has mentioned that the stock trades at P/E multiple of 21.6x and EV/EBITDA multiple of 15.1x its FY2023E estimates.
Comments by Sharekhan
According to Sharekhan, “We upgrade our rating on Balkrishna Industries Ltd.’s to Buy with a revised PT of Rs. 2,700 given robust outlook and earnings growth. We expect strong double-digit volume growth in FY2022E, driven by infrastructure creation and pick-up in economic activity and continued market share gains.”
About the company
Balkrishna is one of the leading manufacturers of over-the-highway tyres. The company makes tyres that are used in various applications, including agricultural, construction, and industrial vehicles as well as earthmoving, port, mining, ATV, and gardening. Balkrishna is a global player present in Europe, US, and India.
Disclaimer
The above stock was picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
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