Reserve Bank of India – Press Releases
[ad_1]
Read More/Less
Ajit Prasad Press Release: 2021-2022/1301 |
[ad_2]
Two firms cheat banks of Rs 70 cr, CBI lodges cases, BFSI News, ET BFSI
[ad_1]
Read More/Less
New Delhi, The Central Bureau of Investigation on Friday registered a case against two private firms and its officials for allegedly cheating banks to the tune of Rs 70 crore.
A CBI official said that case has been registered against a Hyderabad (Telangana) based private company, it’s two Directors, a Guarantor, a Nandyal based private firm and a person.
The official said that the private company based in Hyderabad, had in connivance with others, availed loans from Bank of Baroda, Banjara Hills Branch and later diverted the money for some other use and also for personal gains.
“The accused submitted false stock statements with the bank for concealing their irregularities, falsified their account book and willfully defaulted in repayments. By furnishing fake documents, the accused caused a loss of Rs 61 crore to the bank,” the official said.
The official said that after registering a case, they conducted raids at six different places at Hyderabad, Nandyal, Kurnool and were able to recover incriminating documents against the alleged accused.
Another case was registered against six accused, including three private companies, based in Hyderabad.
He said that the company had availed secured over draft facility of Rs 4 crore and LC of Rs 2 crore with a total limit of Rs 6 crore in 2016 for business purpose from the Union Bank of India.
It was further alleged that after availing the loan, the company committed default in its repayment.
It was a violation of the terms of loan agreement and it’s account slipped into Non-Performing Assets(NPA) in 2018. Later, the bank declared them fraud.
Later, it was found that borrowers had diverted and misappropriated the funds and also mortgaged disputed, unidentified property with an intention to cheat bank. Thus, they caused a loss of Rs 8 crore to the bank.
The CBI conducted raids at several locations and have recovered some evidence against the accused.
[ad_2]
CLICK HERE TO APPLY
Buy This Low Priced Multibagger Realty Stock For 133% Potential Upside In The Long Term
[ad_1]
Read More/Less
Rationale for a ‘Buy’ on Anant Raj as decoded by experts
Realty index has given a 10 year break-out and with strong fundamentals the shares in the sector are expected to give sharp gains.
FII/FPI attracted to the scrip with FII holding in the September ended quarter at 8.28%.
Decent quarterly earnings for the last three quarter despite the covid led disruption. For the last quarter ended September of Fy22, the company posted net profit of Rs. 11.02 crore as against Rs. 8.61 crore in the preceding quarter, while this is an overwhelming increase YoY from just Rs. 2.86 crore during September quarter of Fy 22.
Price target of Rs. 155 on Anant Raj; Potential Upside of 133% In Long term
The scrip is said to face resistance at Rs. 80 but as and when it crosses this level it shall easily and swiftly hit three digit price of Rs. 100 and rally further up to Rs. 155 in the long term.
Experts’ and brokerages take on the scrip
Choice Broking’s Sumeet Bagadia studying the stock price chart of Anant Raj said “This multibagger stock in Rakesh Jhunjhunwala portfolio is consolidating around ₹65 to ₹67 and it is facing strong hurdle at ₹80. Once it gives breakout above ₹80 on closing basis, it may soon hit ₹100 levels. Short term investors can buy Anand Raj shares at current levels and book profit around ₹80. However, they must maintain strict stop loss at ₹60 per share levels.”
Likewise underscoring the fundamentals of the scrip, Proficient Equities’ Dalmia said, “Anant Raj has reported strong quarterly numbers for the last three quarters despite second wave of Copvid-19. It has reported growth in total revenue and net profit in last three quarters that attracted ace investors like Rakesh Jhunjhunwala, FIIs and FPIs. In fact FIIs and FPIs have raised their stake in the company that reflects strong conviction of the market magnets in regard to Anant Raj shares.”
Advising investors to hold the multibagger stock for long term he added, “Aggressive buyers are advised to buy this multibagger stock at current levels maintaining stop loss at ₹60 levels. They can hold the counter for long term target of ₹155.”
Noting the technicals of the scrip; Santosh Meena, Head of Research, Swastika Investmart Ltd said, “Anant Raj share is in strong bullish momentum where it is holding its 200-DMA beautifully and moving in an up-sloping channel. It is bouncing back from the lower end of the channel and it may head towards the higher end which may coincide with the ₹88 level, therefore, we can expect the target of 88 in the near term while over the next year it has the potential to move in triple-digit.”
Disclaimer:
The stock is recommended by experts and brokerages given the fundamentals and other observations. However investors and readers must not construe the story to be an investment advice and 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.
GoodReturns.in
[ad_2]
CLICK HERE TO APPLY
Gold Rates Under Pressure, Although Inflation Tends To Rise: What Is The Trend Now?
[ad_1]
Read More/Less
Personal Finance
oi-Kuntala Sarkar
|
Gold rates in the global markets, and India are facing challenges to gain significantly in the first week of December. However, earlier investors expected that the precious metal will be on the path the reaching the $1900/oz. But breaking all the expectations, gold rates are now quoted at around $1760/oz in the futures markets.
With falling gold rates, common Indian buyers tend to consume more gold for their personal use. December is a wedding season in India, that contributes as the highest gold-demand season in the country. Subdued gold rates will ease the common buyers’ pockets, and the gold demand is also expected to gain a bit with this.
Inflationary pressures, but gold rates under pressure
Inflation is one of the most important reasons behind the change in gold rates. With rising inflation, gold rates usually gain, while inflation stays under control, gold rates too do not react bullishly. However, in December, gold rates are not reacting in that way. Major economies across the world are facing challenges regarding inflation, whilst the USA is experiencing the headline inflation rate at the highest level in the past 30 years. So, as a hedge against inflation, gold rates should react bullishly, but the metal is reacting bearish, globally.
A new Covid variant, Omicron has been reported in multiple countries, but the WHO has recently said that this variant is not might be as severe as the delta variant. So, investors are worrying less about major inflationary pressures. So, it is probably the reason behind gold rate is bearish now. Another reason is, US Fed Chairman Jerome Powell recently sounded dovish about inflation and analysts are thinking that the Fed can take tighter measures to control inflation soon. So, gold rates are not gaining significantly, rather rates are under pressure.
However, Cleveland Federal Reserve Bank President Loretta Mester is worried about the Omicron Covid variant and is expecting intensified inflationary pressures. Additionally, Mester told Financial Times, “If it turns out to be a bad variant it could exacerbate the upward price pressures we’ve seen from the supply-chain problems.”
(Also read: Indian Gold Rates Are Falling Sharply In December, As WHO Eases Omicron Concerns: Check Rates)
However, a falling gold rate will increase gold demand in India. In the domestic market, 22 carat gold rate is quoted at around Rs. 46580/10 grams, and 24 carat gold rate is quoted at around Rs. 47580/10 grams, on December 3. With the rise and fall in gold rates in the global markets, the metal’s prices change in the domestic markets.
(Also read: Gold Rates Are Highly Volatile At The Present Market, After US Consumer Confidence Data Release)
Story first published: Friday, December 3, 2021, 16:15 [IST]
[ad_2]
CLICK HERE TO APPLY
Reserve Bank of India – Press Releases
[ad_1]
Read More/Less
|
In the underwriting auctions conducted on December 03, 2021 for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:
Ajit Prasad Press Release: 2021-2022/1300 |
||||||||||||||||||||||||||||||||||||
[ad_2]
CLICK HERE TO APPLY
Uday Kotak, BFSI News, ET BFSI
[ad_1]
Read More/Less
Veteran banker Uday Kotak has said that Indian banks have been behind the curve on payments and two players Google Pay and PhonePe have a monopoly with an 85% of the market share.
“Indian banks saw it happen in front of them. It’s a wake-up call for Indian banking. Wake up or you will see large parts of traditional financial markets move out,” said Uday Kotak, MD & CEO of Kotak Mahindra Bank, at a discussion at the Infinity Forum, organised by Bloomberg and IFSCA.
Bankers were shortsighted over the last three years and they let the payments market be taken over by two or three players. Their standard response was there is no money in payments, he said, adding that however, consumer tech have revenue models which are outside finance, for example, advertising or e-commerce models.
“Banks under Section 6 of Banking Regulation Act cannot get into non-financial business as defined. There are serious issues about how we are going to draw the line. Simultaneously there is an issue about financial stability,” he said, adding that in the name of better competitive service there should not be any systemic and stability challenge.
On payment companies raising deposits on the behalf of banks, he said the issue really is who is raising the deposits. “Is it the consumer tech companies, which are the front end and who are going to the customers, marketing the deposits and risking the underlying asset? We need to make sure that as we grow into fintechs, we do not betray trust. The most important aspect is consumer trust that has to be protected at all costs.”
MSME lending
On MSME lending, Kotak said the time has some sort of transformation in MSME lending, particularly the turnaround times.
He said the power of data can give a Msme clarity on loans in minutes if not seconds. MSMEs should be able to get to know if they will get money in a day rather than the few weeks they have to wait now. He said GST is an extremely powerful tool, which needs to be leveraged and democratised. “While you protect privacy you need to make data available with consent and work on that with speed.”
On NRI banking
Stressing the need to bring NRIs and PIOs under UPI, he said NRIs have to go through a lot of friction for opening an operative account in India.
“NRIs should be able to do all their transactions at the offshore centre and we must build that with speed.”
Identifying tech, talent and customer as three key components for the Indian financial system to get into the new age, Kotak said the focus has to be on the customer, with technology being the translation and talent the translator.
“We need to have a sales and service oriented and customer-first approach and all the solutions at the click of a button,” he said.
On Gift City, he said it should be built on the lines of London, Dubai, Singapore. There should be a united approach to regulation and policymaking cutting across all regulators.
Digital-only banks
On digital-only banks, he said the current policy doesn’t stop anyone from setting up digital-only banks. only it needs fit and proper and appropriate people setting up the bank. The time has come for some entrepreneurs to make an application to RBI for a digital-only bank, he said.
He said Kotak Mahindra Bank was excited about the digital space and was focused on creating start-ups within the organisation, a different culture, a squad approach and letting these start-ups have their power of imagination and execution. “We are hiring appropriate talent and giving them the ability to go ahead and experience in the financial world even if there are some risks. What we are not compromising is on security and regulation,” he said.
[ad_2]
CLICK HERE TO APPLY
“BUY” This Large Cap NBFC Stock With A Target Price of Rs. 1910 Says HEM Securities
[ad_1]
Read More/Less
Q2FY22 results of Muthoot Finance Ltd.
According to the brokerage, the company’s “Q2FY22 saw a good growth traction compared with Q1FY22. Gold loan AUM grew 5% QoQ and 18% YoY to INR54700. Increased QoQ tonnage (178 tonnes), increased share of online gold loan customers (29.4% of total) assisted growth momentum and total customers reached 8.8 million.”
Based on the management commentary “The company expects NIM to be in the 12-13% range and have a good budget for sales and promotion. Employee costs should be at the same run rate as FY21. The company seeing cost of borrowing coming down. The management is taking steps to bring down the elevated levels of Stage 2 assets. The management expects at least 5% QoQ growth over the next two quarters and 15% in FY22. Gold Loans is approximately 99% of the total Gross loan assets under management and the remaining 1% in other loans.”
According to the brokerage’s research report, the “Company currently operates 4,619 gold loan branches. Branch addition has averaged around 100 per annum in the last three years, partly slowed down by the recent pandemic. The company targets to open 100-150 new branches per annum. Muthoot has become increasingly focused on driving loan growth to old, inactive customers in recent quarters. Company targets >20mn of its old, inactive customers for driving new loans.”
Buy Muthoot Finance Ltd with a target price of Rs. 1910
HEM Securities has claimed that “An average branch of 5-6 employees handles around 1800 loan accounts for Muthoot Finance. Increase in demand for gold loans as economy recovers, sales outreach to inactive clients and increased digitization of processes (e.g. online loan repayment, loan top-ups, etc.) is enabling these branches to handle a higher number of loan accounts.”
According to the brokerage’s call “The average ticket size has grown at 15% CAGR in the past five years to reach Rs62k in FY21. This compares to an average ticket size of around Rs0.15- 0.20mn reported by private sector banks for their gold loan portfolios. Muthoot’s ticket size has room to grow at 8-10% per annum for the next three years to reach Rs82-85K. We value the company at 14.9x FY23 EPS to arrive at the target of 1910.”
HEM Securities in its research has also commented that “Leading gold NBFCs like Muthoot Finance have between 3.5-4.5k branches spread across India, much higher than other NBFCs and small private banks and eclipsed only by some of the largest banks in India. We expect the large extensive branch network and a large number satisfied customers (drives repeat business) is a key source of competitive edge for the specialized gold NBFCs.”
The brokerage has also noted 3 risk factors for the stock which are “Changes in domestic gold prices have an impact on the near-term growth in Muthoot’s AUM as higher gold prices allow customers to borrow more against their collateral and vice versa. A significant decline of more than 15% in gold prices could impact Muthoot’s AUM near-term growth negatively, the permissible loan to value (LTV) in gold lending is capped at 75% by the Reserve Bank of India. Any adverse changes related to the defined LTV or upper caps on lending rates/ NIMs could impact the company negatively and higher than expected increase in competitive intensity could impact company growth estimates negatively. Gold loan industry has attracted interest from several large banks and NBFCs in the last 1-2 years large margin.”
Disclaimer
The stock has been picked from the brokerage report of HEM Securities Limited. 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.
[ad_2]
CLICK HERE TO APPLY
Sebi relaxes minimum promoter lock-in norm for Ujjivan SFB, Ujjivan Fin Services for amalgamation, BFSI News, ET BFSI
[ad_1]
Read More/Less
Markets regulator Sebi has provided relaxation with regard to the minimum promoter lock-in norm to Ujjivan Small Finance Bank (SFB) and its promoter Ujjivan Financial Services, for the purpose of their amalgamation. On October 30, the bank had approved the scheme of amalgamation between Ujjivan Financial Services (transferor company) and Ujjivan SFB (transferee company).
Following this, it had submitted a joint application on behalf of the transferor/promoter to Sebi, seeking relaxation of the three-year minimum promoter lock-in requirements.
Besides, it also sought approval to adopt the proposed scheme of amalgamation as a method to achieve the minimum public shareholding.
“…we hereby inform you that the Sebi, vide its letter dated December 2, 2021, has acceded to our request to relax the three-year minimum promoter lock-in requirements,” it said in a regulatory filing.
The exemption is subject to no-objection certificate (NOC) from the exchanges and final approval by the National Company Law Tribunal (NCLT).
“The exemption being granted from lock-in is only for the period commencing after approval of the proposed scheme of amalgamation by NCLT and till expiry of the lock-in period,” it said citing the Sebi letter.
However, the Sebi specified that the relaxation is granted to them for the “specific purpose of scheme of amalgamation” between Ujjivan Financial Services and Ujjivan SFB and “shall not be treated as a precedence”.
Further, as advised by Sebi, the bank will initiate necessary steps to ensure compliance with minimum public shareholding requirements through mode specified under Sebi circular dated February 22, 2018, it added.
Currently, Ujjivan Financial Services holds 83.32 per cent of the equity shareholding and 100 per cent of preference shareholding of Ujjivan SFB.
As per the minimum shareholding norms, the promoter’s minimum initial contribution in the SFB arm should be at least 40 per cent. If the promoter’s initial shareholding in the SFB is in excess of 40 per cent, it is to be brought down to 40 per cent within a period of five years from the date of commencement of operations of SFB.
This period of five years is expiring on January 31, 2022.
[ad_2]
CLICK HERE TO APPLY
RBI moots easier rules for investing overseas, BFSI News, ET BFSI
[ad_1]
Read More/Less
The Reserve Bank of India (RBI) is batting for easier overseas investment norms for Indian tech entrepreneurs and angel investors, said people with direct knowledge of the matter. As per the current rules, if an Indian resident buys shares in an unlisted company abroad, the foreign company cannot create any more step-down subsidiaries. This has proved to be a hindrance for Indian entrepreneurs looking to invest in foreign startups since it restricts the scalability of such companies.
Now, the RBI has learnt to have given a recommendation to the finance ministry, saying if such step-down subsidiaries are being opened as part of genuine and ‘bona fide’ expansion plans of a company, the restriction should not be applied.
Now, the RBI has learnt to have given a recommendation to the finance ministry, saying if such step-down subsidiaries are being opened as part of genuine and ‘bona fide’ expansion plans of a company, the restriction should not be applied.
Consultations with Industry
Emails sent to the RBI and the finance ministry remained unanswered until press time.
“Indian tech entrepreneurs are constantly looking for acquisition opportunities especially in the other developing countries; however, current rules make it very difficult to make such investments,” said a person cited above. “These investments have potential to bring dollar money back into India if the business venture succeeds.”
The RBI has held extensive consultations with the industry and the recommendations are based on inputs so received, said people cited above. Overseas investments by Indian residents fall under the ambit of the Liberalised Remittance Scheme. “A natural outcome of growth is expansion and hence it is extremely important that the step-down subsidiaries restriction be reconsidered,” said Moin Ladha, partner, Khaitan & Co. “This will enable Indian investors to get the advantages associated with such diversification.”
Indian owns less than 10% equity in the company. Portfolio investments enjoy liberal rules since they are meant for investment purposes only.
Currently, if an Indian buys shares of an unlisted foreign company, the company is presumed to be a joint venture. For instance, say an Indian ‘A’ buys a few shares of ByteDance – the parent of TikTok and an unlisted startup. Indian regulators presume that ByteDance is a JV where ‘A’ exerts some sort of control. Accordingly, ‘A’ is required to meet the steep compliance norms under the RBI rules.
In contrast, if ‘A’ had invested in shares of a foreign listed company, say Microsoft, it would have been considered a portfolio investment and would have been exempt from the compliance norms.
“It is impractical for a minority shareholder to be able to procure information or influence decisions of an overseas entity where they hold investment,” said a person with direct knowledge of the matter. “However, the current regime treat seven a minority investment as setting up or acquiring a joint venture abroad.”
The industry is also learnt to have requested the RBI to reconsider several more regulations. Most important of them all was a request to increase the cap on the LRS route. Currently under LRS, an Indian can remit a maximum of $250,000per financial year. The industry suggested the same to be hiked to at least $350,000. However, the RBI has so far not actedon the input, people cited above said.
Until a few years ago, outward remittance rules used to be the policy domain of RBI under the Foreign Exchange and Management Act (Fema). In other words, RBI could tweak the rules on its own. However, in 2019 the Centre replaced the rules is in the hands of the finance ministry. The RBI has been assigned the role of administering the implementation of NDI rules.
[ad_2]
CLICK HERE TO APPLY
SC refuses to entertain bail plea of Rakesh Wadhawan, asks him to approach HC, BFSI News, ET BFSI
[ad_1]
Read More/Less
New Delhi, The Supreme Court Friday refused to entertain the bail plea filed on health grounds by jailed businessman Rakesh Wadhawan, accused of money laundering in the multi-crore rupees Punjab and Maharashtra Co-operative (PMC) Bank fraud case, saying that he has been in hospital more than the jail. A bench comprising Chief Justice N V Ramana and Justices Surya Kant and Hima Kohli permitted senior advocate Mukul Rohatgi, appearing for Wadhawan, to withdraw the bail plea to approach the high court.
Rohatgi referred to the medical condition of the accused and said that he has been in jail for quite some time.
“I see, he has been in hospital more than in jail. Go to the high court,” the bench said prompting Rohatgi to say that it was the high court which refused the bail.
“File after some time. Not now. Alright permitted to withdraw to approach the high court,” the bench said.
The Bombay High Court on October 14 had refused to grant bail to Wadhawan.
Wadhawan, founder of Housing Development Infrastructure Limited (HDIL), was arrested by the Enforcement Directorate in 2019 in the case.
The high court had said that Wadhawan’s submission that he was immediately required to be released on temporary bail on medical grounds, was “not justified”.
It had said that denial of medical bail was in no way a breach of Wadhawan’s fundamental right to life since he had been provided adequate medical treatment by the state prison authorities whenever required.
Wadhawan, who had undergone a surgery for pacemaker implantation, had sought that he be released on bail so that he can seek discharge from the civic-run KEM Hospital in the city, where he is recuperating while in judicial custody, and shift to a private hospital while out on bail.
He had said in his plea that he suffered from severe comorbidities, that his immune system had been compromised after having contracted COVID-19 recently, and that he was susceptible to contracting infections and ailments while at the civic hospital due to the heavy footfall the hospital received.
He had also said that the KEM Hospital did not have an ICU facility specifically meant for those suffering from cardiac issues.
The fraud at PMC Bank came to light in September 2019 after the Reserve Bank of India discovered that the bank had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to almost-bankrupt Housing Development and Infrastructure Limited (HDIL).
According to RBI, the PMC bank masked 44 problematic loan accounts, including those of HDIL, by tampering with its core banking system, and the accounts were accessible only to limited staff members.
Mumbai Police’s Economic Offences Wing and the ED had registered offences against senior bank officials and HDIL promoters.
[ad_2]