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☕ 19.05.2020: Today's Banking / Financial News at a Glance
🍒 RBI may extend moratorium on repayment of loans for three more months: Report : With the government extending the nationwide lockdown up to May 31, the Reserve Bank of India (RBI) is likely to extend the moratorium on repayment of loans for three more months, according to an SBI research report. On Sunday, the National Disaster Management Authority (NDMA), the nodal department, announced lockdown 4.0 till May 31 to check the spread of the novel coronavirus. The lockdown was first announced by Prime Minister Narendra Modi on March 24 for 21 days in a bid to combat the COVID-19 pandemic. It was first extended till May 3 and again till May 17. In March, RBI had allowed a three-month moratorium on payment of all term loans due between March 1, 2020 and May 31, 2020."With the lockdown now extended up to May 31, we expect RBI to extend the moratorium by three months more," SBI's research report- Ecowrap said.The report said the moratorium for three more months will imply that companies need not pay till August 31, 2020, and this means that there is almost minimal possibility of companies being able to service their interest liabilities then in September.Failing to repay the interest liabilities will mean the account might be classified as non-performing loans as per the RBI norms."Thus, the RBI needs to give operational flexibility to banks for a comprehensive restructuring of the existing loans and also a reclassification of 90 day norm," the report said.The RBI's June 7 circular is stringent and gives little flexibility to banks. - economic times
🍒 Nabard extends ₹20,500-cr special liquidity facility to co-op banks, RRBs : The National Bank for Agriculture and Rural Development (Nabard), on Monday, said it has extended ₹20,500-crore special liquidity facility to co-operative banks (₹15,200 crore) and Regional Rural Banks (₹5,300 crore) in various States. This is against the ₹5,000 crore lent during the first quarter of the last year, Nabard said in a statement. The special liquidity facility is with a view to augment the resources of the Cooperative banks and RRBs to enable them to extend credit to farmers for taking up pre-monsoon and kharif (summer sown crops) 2020 operations, it added.As part of the government’s overall ₹20-lakh-crore special Covid-19 package, Union Finance Minister Nirmala Sitharaman had mentioned last week that Nabard would extend additional refinance support of ₹30,000 crore for crop loan requirement of Rural Co-operative Banks and RRBs.This is over and above the ₹90,000 crore to be provided byNabard through the normal refinance route during this year, she added. - Business Line
🍒 Lenders see a payment recover as economy restarts : Lenders are seeing a slow but sure recovery in loan repayments as customers are increasingly choosing not to exercise the Reserve Bank of India provided option of moratorium on payments to avoid paying higher compounded interest. Small entrepenuers who had earlier opted for a moratorium on repayments are now paying a portion of their dues as the cash flow begins to improve for them with businesses opening up slowly, said bankers.Even salaried credit card borrowers are opting to pay installements as they seek to use their cards more often which is not possible if they opt for a moratorium. "Our repayments have improved to 40% so far in May from 20% in April. Small entrepenuers with loans upto Rs 25 lakhs which make more than 80% of our loan book are increasingly looking to repay as economic activity is picking up. At this rate we could be surprised to see the repayments by the end of May," said Sanjay Agarwal, CEO AU Small Finance Bank.- economic times
🍒 Gold loans catch the fancy of Indian financial market : Gold loans are turning out to be the mojo of Indian financial market. The leaders from State Bank of India or Canara Bank to small banks like ESAF and Ujjivan -- all have started exploring the market deeper.Canara Bank has set up a gold loan business vertical to push gold loans, a product backed by gold ornaments as collateral. The state-owned lender will offer this loans to farmers for crop cultivation as well as to other individuals for emergency needs."The bank has identified the emerging financial needs of customers and the need to support their livelihood in view of the current challenges and uncertainties. In order to address these needs and to provide hassle free credit, the bank has launched a special business vertical dedicated for gold loans," Canara Bank said Monday.SBI said its gold loans are now available thgrough YONO App. Its sending messages to customers make the product polular. - economic times
🍒 Kotak Mahindra Bank becomes first Indian lender to allow video KYC : : Kotak Mahindra Bank on Monday has introduced video-KYC facility for customers opening savings account on Kotak 811 - the banks digital banking platform. The private lender is the first Indian bank to offer video based "zero-contact" onboarding service. The initiative is presently being launched on a pilot basis for savings accounts, Kotak Mahindra said in a press release. "The video KYC process to onboard new customers will be extended to other products in a phased manner," the bank said in a statement.With Video KYC, verification of documents, signature are completed via a video call with representative from the bank without any physical interface. “In the new normal world that we must now adapt to in the aftermath of COVID-19," said Shanti Ekambaram, group president consumer banking, Kotak Mahindra Bank. "In this context, Video KYC can prove to be a game changer where customer verification is completed from the comfort of one’s home or office without the need for a physical interaction."- economic times
🍒 CII-IBA Financial Conditions Index tanks on bank, NBFC pessimism : The CII-IBA Financial Conditions Index (FCI) for Q1 (April-June) FY 2020-21 recorded a steep drop to below 50 for the first time in the past few quarters. The FCI in the reporting quarter was 44.2 against 60.5 in the preceding quarter. The Confederation of Indian Industry (CII) and the Indian Banks’ Association (IBA), in a joint statement, said the steep fall in the index is due to expectation of deterioration in the overall financial conditions in the economy on account of worsening funding liquidity, external financial linkages and economic activity index. However, the 22 respondents (nine public sector banks, five private sector banks and non-banking finance companies, each, two foreign banks and one urban co-operative bank) are quite optimistic with respect to the availability of funds at a lower cost. - Business Line
🍒 IndiaFirst Life Insurance says no news yet on stake sale by Union Bank : Gearing up for a post-Covid world, IndiaFirst Life Insurance remains upbeat about the demand for insurance and said it has not received any communication of a possible stake sale by Union Bank of India. “There is no news so far from shareholders on a possible stake sale by Union Bank of India. As of now, it is a shareholder with a 30 per cent stake. As per the amalgamation deal, all contracts with Andhra Bank have got transferred to UBI, including corporate agency,” said RM Vishakha, Managing Director and Chief Executive Officer, IndiaFirst Life Insurance. Andhra Bank, which held 29.53 per cent stake in the insurer, was merged with Union Bank of India on April 1; under IRDAI guidelines, one promoter cannot hold stake in two insurance companies.There have been reports that Union Bank, which also holds a 25.1 per cent equity stake in Star Union Dai-ichi Life Insurance, will pare its holding in IndiaFirst Life Insurance to less than 10 per cent.In an interaction with BusinessLine, Vishakha noted that the merger of the banks almost coincided with the national lockdown and that the insurer is working with the new promoter. “It is going a bit slow because of the absence of physical contact and the very thinly populated staff coming to office. Banks are focussing on core activities right now,” she said. - Business Line
🍒 Indiabulls Housing Finance raises Rs 1,030 crore : Indiabulls Housing Finance Ltd on Monday said it has raised Rs 1,030 crore by issuing bonds on a private placement basis. The company on May 18 allotted 10,300 secured, redeemable, non-convertible debentures of face value Rs 10 lakh each, aggregating to Rs 1,030 crore, on a private placement basis, the company said in a regulatory filing. The coupon rate on the bonds with three years tenor is 9.10 per cent per annum (payable annually). Shares of Indiabulls Housing Finance closed 10.87 per cent down at Rs 118.85 on BSE. - Moneycontrol.com
🍒 RBI asks HDFC to lower stake in insurance units to 50% : The Reserve Bank of India (RBI) has asked mortgage lender Housing Development Finance Corporation (HDFC) to reduce stake in HDFC Life Insurance and HDFC Ergo -- post-merger with HDFC Ergo Health Insurance -- to 50 percent or below from 51.43 percent and 50.58 percent, respectively. At present, the corporation holds 52.25 percent in HDFC Ergo Health and 50.48 percent in HDFC Ergo and based on the share exchange ratio, HDFC is entitled to 50.58 percent in the merged entity, HDFC Ergo. The stake needs to be reduced within a period of six months from the date of the merger.In the case of HDFC Life Insurance Company, the corporation needs to lower the stake by December 16, 2020, to 50 percent or below form existing 51.43 percent holding. "The stake sales could be worth Rs 1,500 crore – 14 percent of FY21e profit and 1-2 percent of net worth. HDFC may utilize such gains to build buffer-provisions. Regular dividend may go down a bit," a brokerage said.- Moneycontrol.com
🍒 RBI policy: Economists seek removal of reverse repo window ahead of MPC meeting ; In a pre-policy meeting with the Reserve Bank of India (RBI) governor Shaktikanta Das on Saturday, economists have recommended the abolition of reverse repo window and replacing it with the Standing Deposit Facility (SDF) for liquidity management, according to an economist who attended the meeting. SDF is a liquidity management tool based on which banks can park as much money with the central bank without getting collateral and at a lower rate than reverse repo. The concept was first proposed by the Urijit Patel Committee six years ago. The monetary policy committee is expected to meet between June 3-5, 2020, and the RBI should be announcing its second bi-monthly policy of 2020-21 on June 5. The covid-19 pandemic and the lockdown had forced RBI to advance its first bimonthly policy announcement by a week to March 27, 2020. - Live Mint
🍒 Non-strategic-sector PSEs to be privatized : Finance minister Nirmala Sitharaman on Sunday announced a new public sector enterprise (PSE) policy under which there will be at least one state-run company in strategic sectors while PSEs in non-strategic sectors will be privatized. In her final and fifth tranche of announcement of the stimulus and reform measures, Sitharaman said India needs a coherent policy on PSEs, wherein they will play important roles in defined areas. She said the Centre will soon announce the details of the policy, listing strategic sectors that require the presence of PSEs in public interest. “In strategic sectors, at least one enterprise will remain in the public sector but private sector will also be allowed. In other sectors, PSEs will be privatized," she added. The timing of privatization of PSUs will be based on feasibility. To minimize wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four, she said. “Others will be privatized or merged or brought under holding companies." - Live Mint
🍒 Conversion of G-Secs into longer-dated securities gets tepid response : The government, on Monday, got tepid response to the conversion of the 8.27 per cent 2020 government security (G-Sec) into three securities maturing in 2024, 2030 and 2060. It received offers for conversion for only about a third of the total notified amount of ₹30,000 crore. Best response The best response the government got was for the conversion of 8.27 per cent 2020 G-Sec (maturing on June 09) into 6.18 per cent 2024 G-Sec, with 25 market players collectively offering about 54 per cent of the notified amount of ₹13,000 crore. The RBI accepted seven offers for the conversion and issued destination securities (6.18 per cent 2024 G-Sec) aggregating ₹5537.764 crore at a price of ₹103.78 (yield: 5.2180 per cent). G-Sec price and yield move in opposite directions. The response to the conversion of the 8.27 per cent 2020 G-Sec (maturing on June 09) for its conversion into 5.79 per cent 2030 G-Sec was poor, with seven market players collectively offering just about 5 per cent of the notified amount of ₹13,000 crore. The RBI rejected all the offers. - Business Line
🍒 PFRDA proposes composite social security scheme for low-income persons, says chairman : To enhance social security cover for unorganised sector workers and low-income persons, a composite scheme providing both pension and insurance benefits has been suggested to the government, the chairman of the Pension Fund and Regulatory Authority of India (PFRDA) said. The authority has suggested to the Finance Ministry that a comprehensive social security scheme can be explored for people having low income, PFRDA Chairman Supratim Bandyopadhyay told . "We have given some suggestions to the government. We are thinking whether we can have a comprehensive pension scheme taking along APY (Atal Pension Yojana), Pradhan Mantri Jeevan Jyoti Bima and Suraksha Bima. We are thinking of taking all these products together whether we can have a combined kind of scheme," Bandyopadhyay said.The scheme, he said, can be managed in a way so that the APY part comes to the PFRDA and the insurance part goes to the insurer."All these things can come together. APY will give the pension benefit, the old age security, along with that people need insurance benefits also," he said.- economic times
🍒 Govt notifies cut in EPF contribution to 10% for May, June, July : Labour ministry, on Monday, notified lower rates of provident fund contribution at 10%, thus increasing the take home salary of 4.3 crore provident fund subscribers and giving relief to 6.5 lakh establishments. The existing rate of contribution by both employee and employer is 12%. The move, which comes days after finance minister Nirmala Sitharaman announced the reduction in PF rates for three months as part of the government's Rs 20 lakh crore stimulus package, will infuse Rs 6,750 crore liquidity into the system. Thai would be applicable on May-June-July salary period. This would be applicable to all establishments covered under the Employees Provident Fund Organisation including the exempted establishments. However, government which is the employer in the case of the central public sector enterprises and state public sector will continue to pay 12% as its share. Even establishments covered under the earlier announced Rs 1.7 lakh crore Pradhan Mantri Garib Kalyan Yojana will not be covered under the said notification.- economic times
🍒 Sensex loses over 1,000 pts; here are 15 top single-day falls : The market started off the week on a negative note, with the benchmark indices falling 3.4 percent on May 18 as the details of the Rs 20-lakh-crore economic package disappointed Dalal Street and accelerating coronavirus infections fuelled added to concerns. The BSE Sensex witnessed the 13th biggest single-day fall on May 18, plunging 1,068.75 points or 3.44 percent to close at 30,028.98, while the Nifty50 tumbled 313.60 points or 3.43 percent to 8,823.25 despite positive global cues. Around Rs 3.65 lakh crore were wiped of investors' wealth in a single day.
🍒 Gold hits record high of Rs 47,861 per 10 gram, silver up Rs 3,000 per kg ; Gold prices extended their gains for the sixth consecutive day to hit a new record high of Rs 47,861 per 10 gram in the Mumbai bullion market on a weaker rupee versus the dollar. The yellow metal edged up on increased US-China tension and weak economic data boosted its safe-haven appeal. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 35,896, Rs 43,841 and Rs 47,861 plus 3 percent GST. Silver prices gained Rs 3,085 to Rs 48,120 per kg from its closing on May 15.
🍒 Rupee slips 37 paise to 75.95 against US dollar ; The rupee depreciated 37 paise to 75.95 against the US dollar on Monday tracking weak opening of domestic equities and sustained foreign fund outflows. The local unit opened at 75.85, then lost further ground and fell to 75.95 against the US dollar, down 37 paise from its previous close. It had settled at 75.58 against the US dollar on Friday.
🍒 Shares of Central Bank of India in Stock Market : 50% of moneycontrol users recommend buying Central Bank of India shares. In BSE, shares closed at Rs.14.20 against Rs.14.90. In NSE, shares closed Rs.14.15 against Rs.14.90.
Have a Good day.
☕ 19.05.2020: Today's Banking / Financial News at a Glance
🍒 RBI may extend moratorium on repayment of loans for three more months: Report : With the government extending the nationwide lockdown up to May 31, the Reserve Bank of India (RBI) is likely to extend the moratorium on repayment of loans for three more months, according to an SBI research report. On Sunday, the National Disaster Management Authority (NDMA), the nodal department, announced lockdown 4.0 till May 31 to check the spread of the novel coronavirus. The lockdown was first announced by Prime Minister Narendra Modi on March 24 for 21 days in a bid to combat the COVID-19 pandemic. It was first extended till May 3 and again till May 17. In March, RBI had allowed a three-month moratorium on payment of all term loans due between March 1, 2020 and May 31, 2020."With the lockdown now extended up to May 31, we expect RBI to extend the moratorium by three months more," SBI's research report- Ecowrap said.The report said the moratorium for three more months will imply that companies need not pay till August 31, 2020, and this means that there is almost minimal possibility of companies being able to service their interest liabilities then in September.Failing to repay the interest liabilities will mean the account might be classified as non-performing loans as per the RBI norms."Thus, the RBI needs to give operational flexibility to banks for a comprehensive restructuring of the existing loans and also a reclassification of 90 day norm," the report said.The RBI's June 7 circular is stringent and gives little flexibility to banks. - economic times
🍒 Nabard extends ₹20,500-cr special liquidity facility to co-op banks, RRBs : The National Bank for Agriculture and Rural Development (Nabard), on Monday, said it has extended ₹20,500-crore special liquidity facility to co-operative banks (₹15,200 crore) and Regional Rural Banks (₹5,300 crore) in various States. This is against the ₹5,000 crore lent during the first quarter of the last year, Nabard said in a statement. The special liquidity facility is with a view to augment the resources of the Cooperative banks and RRBs to enable them to extend credit to farmers for taking up pre-monsoon and kharif (summer sown crops) 2020 operations, it added.As part of the government’s overall ₹20-lakh-crore special Covid-19 package, Union Finance Minister Nirmala Sitharaman had mentioned last week that Nabard would extend additional refinance support of ₹30,000 crore for crop loan requirement of Rural Co-operative Banks and RRBs.This is over and above the ₹90,000 crore to be provided byNabard through the normal refinance route during this year, she added. - Business Line
🍒 Lenders see a payment recover as economy restarts : Lenders are seeing a slow but sure recovery in loan repayments as customers are increasingly choosing not to exercise the Reserve Bank of India provided option of moratorium on payments to avoid paying higher compounded interest. Small entrepenuers who had earlier opted for a moratorium on repayments are now paying a portion of their dues as the cash flow begins to improve for them with businesses opening up slowly, said bankers.Even salaried credit card borrowers are opting to pay installements as they seek to use their cards more often which is not possible if they opt for a moratorium. "Our repayments have improved to 40% so far in May from 20% in April. Small entrepenuers with loans upto Rs 25 lakhs which make more than 80% of our loan book are increasingly looking to repay as economic activity is picking up. At this rate we could be surprised to see the repayments by the end of May," said Sanjay Agarwal, CEO AU Small Finance Bank.- economic times
🍒 Gold loans catch the fancy of Indian financial market : Gold loans are turning out to be the mojo of Indian financial market. The leaders from State Bank of India or Canara Bank to small banks like ESAF and Ujjivan -- all have started exploring the market deeper.Canara Bank has set up a gold loan business vertical to push gold loans, a product backed by gold ornaments as collateral. The state-owned lender will offer this loans to farmers for crop cultivation as well as to other individuals for emergency needs."The bank has identified the emerging financial needs of customers and the need to support their livelihood in view of the current challenges and uncertainties. In order to address these needs and to provide hassle free credit, the bank has launched a special business vertical dedicated for gold loans," Canara Bank said Monday.SBI said its gold loans are now available thgrough YONO App. Its sending messages to customers make the product polular. - economic times
🍒 Kotak Mahindra Bank becomes first Indian lender to allow video KYC : : Kotak Mahindra Bank on Monday has introduced video-KYC facility for customers opening savings account on Kotak 811 - the banks digital banking platform. The private lender is the first Indian bank to offer video based "zero-contact" onboarding service. The initiative is presently being launched on a pilot basis for savings accounts, Kotak Mahindra said in a press release. "The video KYC process to onboard new customers will be extended to other products in a phased manner," the bank said in a statement.With Video KYC, verification of documents, signature are completed via a video call with representative from the bank without any physical interface. “In the new normal world that we must now adapt to in the aftermath of COVID-19," said Shanti Ekambaram, group president consumer banking, Kotak Mahindra Bank. "In this context, Video KYC can prove to be a game changer where customer verification is completed from the comfort of one’s home or office without the need for a physical interaction."- economic times
🍒 CII-IBA Financial Conditions Index tanks on bank, NBFC pessimism : The CII-IBA Financial Conditions Index (FCI) for Q1 (April-June) FY 2020-21 recorded a steep drop to below 50 for the first time in the past few quarters. The FCI in the reporting quarter was 44.2 against 60.5 in the preceding quarter. The Confederation of Indian Industry (CII) and the Indian Banks’ Association (IBA), in a joint statement, said the steep fall in the index is due to expectation of deterioration in the overall financial conditions in the economy on account of worsening funding liquidity, external financial linkages and economic activity index. However, the 22 respondents (nine public sector banks, five private sector banks and non-banking finance companies, each, two foreign banks and one urban co-operative bank) are quite optimistic with respect to the availability of funds at a lower cost. - Business Line
🍒 IndiaFirst Life Insurance says no news yet on stake sale by Union Bank : Gearing up for a post-Covid world, IndiaFirst Life Insurance remains upbeat about the demand for insurance and said it has not received any communication of a possible stake sale by Union Bank of India. “There is no news so far from shareholders on a possible stake sale by Union Bank of India. As of now, it is a shareholder with a 30 per cent stake. As per the amalgamation deal, all contracts with Andhra Bank have got transferred to UBI, including corporate agency,” said RM Vishakha, Managing Director and Chief Executive Officer, IndiaFirst Life Insurance. Andhra Bank, which held 29.53 per cent stake in the insurer, was merged with Union Bank of India on April 1; under IRDAI guidelines, one promoter cannot hold stake in two insurance companies.There have been reports that Union Bank, which also holds a 25.1 per cent equity stake in Star Union Dai-ichi Life Insurance, will pare its holding in IndiaFirst Life Insurance to less than 10 per cent.In an interaction with BusinessLine, Vishakha noted that the merger of the banks almost coincided with the national lockdown and that the insurer is working with the new promoter. “It is going a bit slow because of the absence of physical contact and the very thinly populated staff coming to office. Banks are focussing on core activities right now,” she said. - Business Line
🍒 Indiabulls Housing Finance raises Rs 1,030 crore : Indiabulls Housing Finance Ltd on Monday said it has raised Rs 1,030 crore by issuing bonds on a private placement basis. The company on May 18 allotted 10,300 secured, redeemable, non-convertible debentures of face value Rs 10 lakh each, aggregating to Rs 1,030 crore, on a private placement basis, the company said in a regulatory filing. The coupon rate on the bonds with three years tenor is 9.10 per cent per annum (payable annually). Shares of Indiabulls Housing Finance closed 10.87 per cent down at Rs 118.85 on BSE. - Moneycontrol.com
🍒 RBI asks HDFC to lower stake in insurance units to 50% : The Reserve Bank of India (RBI) has asked mortgage lender Housing Development Finance Corporation (HDFC) to reduce stake in HDFC Life Insurance and HDFC Ergo -- post-merger with HDFC Ergo Health Insurance -- to 50 percent or below from 51.43 percent and 50.58 percent, respectively. At present, the corporation holds 52.25 percent in HDFC Ergo Health and 50.48 percent in HDFC Ergo and based on the share exchange ratio, HDFC is entitled to 50.58 percent in the merged entity, HDFC Ergo. The stake needs to be reduced within a period of six months from the date of the merger.In the case of HDFC Life Insurance Company, the corporation needs to lower the stake by December 16, 2020, to 50 percent or below form existing 51.43 percent holding. "The stake sales could be worth Rs 1,500 crore – 14 percent of FY21e profit and 1-2 percent of net worth. HDFC may utilize such gains to build buffer-provisions. Regular dividend may go down a bit," a brokerage said.- Moneycontrol.com
🍒 RBI policy: Economists seek removal of reverse repo window ahead of MPC meeting ; In a pre-policy meeting with the Reserve Bank of India (RBI) governor Shaktikanta Das on Saturday, economists have recommended the abolition of reverse repo window and replacing it with the Standing Deposit Facility (SDF) for liquidity management, according to an economist who attended the meeting. SDF is a liquidity management tool based on which banks can park as much money with the central bank without getting collateral and at a lower rate than reverse repo. The concept was first proposed by the Urijit Patel Committee six years ago. The monetary policy committee is expected to meet between June 3-5, 2020, and the RBI should be announcing its second bi-monthly policy of 2020-21 on June 5. The covid-19 pandemic and the lockdown had forced RBI to advance its first bimonthly policy announcement by a week to March 27, 2020. - Live Mint
🍒 Non-strategic-sector PSEs to be privatized : Finance minister Nirmala Sitharaman on Sunday announced a new public sector enterprise (PSE) policy under which there will be at least one state-run company in strategic sectors while PSEs in non-strategic sectors will be privatized. In her final and fifth tranche of announcement of the stimulus and reform measures, Sitharaman said India needs a coherent policy on PSEs, wherein they will play important roles in defined areas. She said the Centre will soon announce the details of the policy, listing strategic sectors that require the presence of PSEs in public interest. “In strategic sectors, at least one enterprise will remain in the public sector but private sector will also be allowed. In other sectors, PSEs will be privatized," she added. The timing of privatization of PSUs will be based on feasibility. To minimize wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four, she said. “Others will be privatized or merged or brought under holding companies." - Live Mint
🍒 Conversion of G-Secs into longer-dated securities gets tepid response : The government, on Monday, got tepid response to the conversion of the 8.27 per cent 2020 government security (G-Sec) into three securities maturing in 2024, 2030 and 2060. It received offers for conversion for only about a third of the total notified amount of ₹30,000 crore. Best response The best response the government got was for the conversion of 8.27 per cent 2020 G-Sec (maturing on June 09) into 6.18 per cent 2024 G-Sec, with 25 market players collectively offering about 54 per cent of the notified amount of ₹13,000 crore. The RBI accepted seven offers for the conversion and issued destination securities (6.18 per cent 2024 G-Sec) aggregating ₹5537.764 crore at a price of ₹103.78 (yield: 5.2180 per cent). G-Sec price and yield move in opposite directions. The response to the conversion of the 8.27 per cent 2020 G-Sec (maturing on June 09) for its conversion into 5.79 per cent 2030 G-Sec was poor, with seven market players collectively offering just about 5 per cent of the notified amount of ₹13,000 crore. The RBI rejected all the offers. - Business Line
🍒 PFRDA proposes composite social security scheme for low-income persons, says chairman : To enhance social security cover for unorganised sector workers and low-income persons, a composite scheme providing both pension and insurance benefits has been suggested to the government, the chairman of the Pension Fund and Regulatory Authority of India (PFRDA) said. The authority has suggested to the Finance Ministry that a comprehensive social security scheme can be explored for people having low income, PFRDA Chairman Supratim Bandyopadhyay told . "We have given some suggestions to the government. We are thinking whether we can have a comprehensive pension scheme taking along APY (Atal Pension Yojana), Pradhan Mantri Jeevan Jyoti Bima and Suraksha Bima. We are thinking of taking all these products together whether we can have a combined kind of scheme," Bandyopadhyay said.The scheme, he said, can be managed in a way so that the APY part comes to the PFRDA and the insurance part goes to the insurer."All these things can come together. APY will give the pension benefit, the old age security, along with that people need insurance benefits also," he said.- economic times
🍒 Govt notifies cut in EPF contribution to 10% for May, June, July : Labour ministry, on Monday, notified lower rates of provident fund contribution at 10%, thus increasing the take home salary of 4.3 crore provident fund subscribers and giving relief to 6.5 lakh establishments. The existing rate of contribution by both employee and employer is 12%. The move, which comes days after finance minister Nirmala Sitharaman announced the reduction in PF rates for three months as part of the government's Rs 20 lakh crore stimulus package, will infuse Rs 6,750 crore liquidity into the system. Thai would be applicable on May-June-July salary period. This would be applicable to all establishments covered under the Employees Provident Fund Organisation including the exempted establishments. However, government which is the employer in the case of the central public sector enterprises and state public sector will continue to pay 12% as its share. Even establishments covered under the earlier announced Rs 1.7 lakh crore Pradhan Mantri Garib Kalyan Yojana will not be covered under the said notification.- economic times
🍒 Sensex loses over 1,000 pts; here are 15 top single-day falls : The market started off the week on a negative note, with the benchmark indices falling 3.4 percent on May 18 as the details of the Rs 20-lakh-crore economic package disappointed Dalal Street and accelerating coronavirus infections fuelled added to concerns. The BSE Sensex witnessed the 13th biggest single-day fall on May 18, plunging 1,068.75 points or 3.44 percent to close at 30,028.98, while the Nifty50 tumbled 313.60 points or 3.43 percent to 8,823.25 despite positive global cues. Around Rs 3.65 lakh crore were wiped of investors' wealth in a single day.
🍒 Gold hits record high of Rs 47,861 per 10 gram, silver up Rs 3,000 per kg ; Gold prices extended their gains for the sixth consecutive day to hit a new record high of Rs 47,861 per 10 gram in the Mumbai bullion market on a weaker rupee versus the dollar. The yellow metal edged up on increased US-China tension and weak economic data boosted its safe-haven appeal. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 35,896, Rs 43,841 and Rs 47,861 plus 3 percent GST. Silver prices gained Rs 3,085 to Rs 48,120 per kg from its closing on May 15.
🍒 Rupee slips 37 paise to 75.95 against US dollar ; The rupee depreciated 37 paise to 75.95 against the US dollar on Monday tracking weak opening of domestic equities and sustained foreign fund outflows. The local unit opened at 75.85, then lost further ground and fell to 75.95 against the US dollar, down 37 paise from its previous close. It had settled at 75.58 against the US dollar on Friday.
🍒 Shares of Central Bank of India in Stock Market : 50% of moneycontrol users recommend buying Central Bank of India shares. In BSE, shares closed at Rs.14.20 against Rs.14.90. In NSE, shares closed Rs.14.15 against Rs.14.90.
Have a Good day.
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