company scrip code: 533033 company scrip code: isgec eq
TRANSCRIPT
Dated: 23-08-2021 To, To, The BSE Ltd. The National Stock Exchange
of India Limited Registered Office: Floor 25, Exchange Plaza, C-1,
Block G, P J Towers, Dalal Street, Bandra Kurla Complex, Bandra (E)
Mumbai 400 001 Mumbai – 400 051 Company Scrip Code: 533033 Company
Scrip Code: ISGEC EQ
Dear Madam / Sir,
Furnishing of Information as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and any other SEBI
Regulations, as may be applicable.
Subject: Newspaper Publication regarding Notice of Book Closure Dates.
1. Please find enclosed herewith copies of the advertisement, published in English daily newspaper (Business Line) and Hindi daily newspaper at registered office Yamunanagaer (Hari Bhoomi) on August 22, 2021, in respect of notice for book closure dates.
2. This intimation is also available on the website of the Company at www.isgec.com
3. The above is for your information and records.
Thanking you,
(S.K. Khorana)
Encl: as above
BUSINESS OFFER
FARM HOUSE / LAND / RESORTS
What head of income is the compensation received on compulsory acquisition of a house with plot taxable under? Or is it exempt?
RAJAN NA
Section 45(5) of the Income Tax Act, 1961 (the Act) deals with taxability of capital gains pursuant to compulsory acquisition of capital asset under any law. A house with plot is a capital asset and gains arising due to compulsory acquisition shall be taxed under the head ‘Capital Gain’. Depending on the period of holding the capital gains may have to be categorized as longterm or shortterm .
The query is related to tax deducted at source. Is it mandatory to file income tax returns, by only referring to Form 26AS? I am yet to receive Form 16/16a from the deductor. In another case Form 26AS doesn’t reflect amounts appropriately, partly they have allowed partly they have not given credit. I request you to please clarify what can be claimed as tax paid now, in ITR?
SIVALINGAM
Income earned during the financial year needs to be offered to tax while filing the tax return in India. An individual is required to collate details of all income earned during the financial year, like salary income, rental income, interest income, etc. and consider the same for tax filing, regardless of whether there has been tax deduction on such income. It may be noted that the details reflected in the Form 26AS are based on the withholding tax returns filed by tax deductor. It is important to reconcile the income and taxes reported in Form 26AS before filing the tax return. The central processing unit (CPC) checks the accuracy of the amounts offered in the tax return by comparing it with 26AS and raises queries in case of discrepancies. Therefore, in case of any difference in the amount, you are required to connect with the deductor so that necessary corrective action can be undertaken which should then reflect in Form 26AS.
TAX QUERY
SUDHAKAR SETHURAMAN
Send your queries to [email protected]
................CH-CHE
KUMAR SHANKAR ROY ..........................................
BL Research Bureau
Interest in directly investing in inter national stocks is growing in India and to cater to this, new vistas are opening up for Indian retail investors eager to diversify beyond domestic stocks. Spe cial platforms are coming up in Gu jarat International Finance TecCity (GIFT City) to enable the transaction of international securities. Currently, in vestors can take exposure to US stocks through online platforms, having tie ups with US brokers. We take a look at the newer ways of going global and how it compares with the current route.
GIFT way In the GIFT City, NSE International Ex change (NSE IFSC) will permit trading in select US stocks facilitated through the NSE IFSC platform. The offering will be in the form of unsponsored deposit ory receipts. In this route, market makers buy US stocks and issue depos itary receipts against shares that lie with custodian bank.
The entire trading, clearing, settle ment and holding of US stocks will be under the regulatory structure of IFSC Authority. Indian retail investors will
be able to transact on the NSE IFSC plat form under the LRS limits prescribed by RBI that permits resident individu als to remit up to USD 2,50,000 (1.8 crore at current rates) per financial year. Investors will be able to hold the depository receipts in their own demat accounts opened in GIFT City. This in dicates investors would need to open demat accounts with the entities based in GIFT City. Given the high prices of US stocks for eg. one Amazon.com Inc share costs $3100 (2.3 lakh) investors will be provided with an option to trade in fractional quantity/value. All the trades will also be covered under the investor protec tion framework at NSE IFSC. To begin with, NSE IFSC is expected to list depos itary receipts of 50 US stocks including Google parent Alphabet, Facebook, Amazon, Tesla etc.
India INX, BSE’s international arm, is also adding international stocks to trading, including shares from major USlisted companies via its wholly owned subsidiary India INX Global Ac cess IFSC. It proposes to offer stocks from the US, Canada, UK, Europe, Aus tralia, and Japan, covering about 80 percent of the investing universe. Res ident individuals can use the India INX platform under the LRS route. Eventu
ally, India INX in the first phase is ex pected to provide access to over 130 ex changes across 31 countries worldwide
How it compares The GIFT way of investing in global stocks offers distinct advantages over the existing route of direct investing where one opens a US brokerage ac count through online platforms such as Vested, Globalise, Stockal etc. Invest ing in global securities in the GIFT ex changes is likely to be more secure as the transactions will be overseen by IF SCA. Additionally, the GIFT way of global investing is likely to make the entire process easier and, importantly, it could be at a lower cost for Indian in vestors although we await exact pri cing details. Right now, online plat forms charge base plan opening fee of upto 499 per year or 399 onetime, while brokerage can be upto $2.99 per trade. Under the paid/premium plans, brokerage fees are virtually free gener ally, but account charges range from 2,50013,999 a year. There are costs in volved in the deposit process to fund US brokerage account, depending on the bank you use. Similarly, during withdrawals, the remitting bank will charge fee for the transfer. However, do remember that one would need to
watch out the liquidity/volume aspect and premium/discount on depositary receipts over actual US stocks when trading eventually begins.
Taxation remains a grey area too. On paper, IFSC is a taxexempt jurisdiction and so taxes such as capital gains tax, STT and stamp duty do not apply. How ever, domain experts opine that the taxfree status can be enjoyed only if a person or company located in IFSC campus is carrying those trades.
Readymade portfolios The nearly 50 international mutual funds arguably offer the best way to play international stocks and score over others in many ways. Firstly, these funds are managed by professionals who have done the research and are skilled at portfolio management. Two, most of the international funds are available for Indian investors only after their master fund has developed a trackrecord. In case of indexbased in ternational funds, the indices too have a demonstrable history. Three, MFs compress the costs linked to direct in vesting in global stocks into one single data point, with total expense ratio (TER) for direct plans ranging from 0.102.28 per cent. Four, direct global stock investing also brings along with it the hassles related to capital gain tax, withholding tax on dividend from for eign securities etc.
Beyond the international MF route, curated portfolios from ICICI Securit ies (ISec), which operates ICICIdirect, by virtue of a tieup with US investor advisor, Interactive Advisors, has been introduced. These portfolios of inter national stocks are built on models constructed by global fund managers such as Global X by Mirae Asset, State Street Global Advisors, Legg Mason, Wisdom Tree. There won’t be any brokerage on such transactions, but there is an asset management fee linked to the portfolio and investment strategy. There is also a minimum in vestment amount of $100. Some of the online platforms such as Vested, Stockal and Globalise also offer pre built stock portfolios based on differ ent strategies and themes. There may be an access fee depending on plans.
New roads open for global investing MARKET WISE
PATHS TO PROFIT
International mutual funds offer the best way to play global investment opportunities for retail investors compared to available options
SBI festival offers SBI has announced multiple offerings for their
retail customers ahead of the festive season.
It is providing a special interest concession of
25 basis points (bps) for customers applying
for a car loan via YONO. There is also 100 per
cent waiver on processing fees for car loan
customers who can also avail the facility of up
to 90 per cent onroad financing. For its gold
loan customers, SBI is offering a 75 bps cut in
interest rates. It has further waived off the
processing fee for all the customers applying
for a gold loan via YONO.
Muthoottu Mini NCDs Muthoottu Mini, a nondeposit taking NBFC in
the gold loan sector, is offering secured and
unsecured debentures (NCDs) of the face
value of 1,000 each. The coupon rates range
from 8.75 10.00 per cent per annum. The NCD
issue opened on August 18 and closes on
September 9, with an option of early closure
or extension. The minimum application is for
10 NCDs (10,000). While the secured NCD
comes with tenure of up to 50 months, the
unsecured NCD is available for 84 months.
Interest rates on home loans (%)
Institution
Bank of Baroda 6.75-8.35 6.75-8.35 6.75-8.35
Bank of India 6.85-8.35 6.85-8.35 6.85-8.35
Bank of Maharashtra 6.90-8.40 6.90-8.40 6.90-8.40
Canara Bank 6.9-8.9 6.9-8.9 6.9-8.9
Central Bank 6.85-7.30 6.85-7.30 6.85-7.30
HDFC Bank 6.75-7.50 6.75-7.75 7.00-7.85
ICICI Bank 6.75-7.3 6.75-7.45 7.00- 7.55
Indian Bank 6.80-7.40 6.80-7.40 6.80-7.40
IOB 7.05 7.05-7.15 7.15-7.3
State Bank of India 6.70 - 7.15 6.70 - 7.30 6.95 - 7.40
UCO Bank 6.90-7.25 6.90-7.25 6.90-7.25
Union Bank of India 6.8-7.35 6.8-7.4 6.9-7.4
HOUSING FINANCE COMPANIES (Floating rates)
Tata Capital ≥6.9 ≥6.9 ≥6.9
HDFC 6.75-7.65 6.75-7.90 7.0-8.0
LIC Housing Finance 6.66-7.60 6.66-7.80 6.9-7.90
Note: Rates that vary with tenures within the specified loan amounts are indicated as a range. Fixed interest rates may be subject to a revision after a specified tenure. Rates may also apply only for a definite period and change to floating thereafter. Data taken from respective bank’s website as on August 20, 2021. Contributed by BankBazaar.com, an online marketplace for comparing loans and insurance products.
CM YK
Scan & Share
MAULIK MADHU ..........................................
BL Research Bureau
Last week, housing finance company, HDFC and the country’s largest bank, SBI launched new fixed deposits. While the HDFC Green & Sustainable Deposit is targeted at those motivated by the ESG (environmental, social, and governance) theme, the appeal of SBI’s Platinum Deposit Scheme lies in the slightly higher rates compared to the bank’s existing deposit rates.
That said, these deposits don’t seem attractive, across both short (i.e. less than one year) and long tenures. There are many other higherreturn fixed deposit options, both from banks and nonbanking financial companies (NBFCs) that investors can consider. With interest rates expected to move up, though not any time this year, investors can go for 1–2year de posits (and not very longtenure ones) to benefit from a potential rate hike.
SBI Platinum doesn't shine The scheme comes with three tenure options – 75 days (2.5 months), 525 days (around 1.5 years) and 2250 days (6 years and 3 months) with respective interest rates of 3.95 per cent, 5.10 per cent and 5.55 per cent for under 2 crore deposits. These rates are 0.05 to 0.15 percentage points higher than those offered on SBI’s existing depos its of such tenures.
Senior citizens get 4.45 per cent and 5.60 per cent on the Platinum 75 days
and 525 days deposit respectively. Plat inum 2250 days deposit offers 6.20 per cent (rate applicable on the SBI WE CARE Scheme), an extra 0.65 per cent for senior citizens. The Platinum de posit scheme is open for investment until 14 September 2021.
Deposits from the Post Office and many public sector banks are a good alternative to SBI Platinum deposits. The ultrasafe Post Office 1year and 2 year time deposits (interest paid an nually, calculated quarterly) offer 5.5 per cent per annum.
This is better than the 5.10 per cent offered to nonsenior citizens on SBI’s platinum 525 days deposit.
Many other public sector banks too offer 5.10 5.20 per cent on their 12 year deposits. SBI’s 5.6 per cent for senior citizens is a tad better than the 5.50 per cent on Post Office deposits
but is similar (5.60 – 5.70) to that on many public sector bank deposits.
HDFC green deposits flash amber HDFC’s Green & Sustainable Deposit (Green Deposit) is for those enthused by the popular ESG theme. Money mo bilised through these deposits will be used to fund projects supporting the UN’s sustainable development goals. These deposits have tenures ranging from 33 to 120 months and interest rates from 5.75 to 6.55 per cent per an num on deposits of up to 2 crore. De posits of up to 50 lakh will get 0.10 per cent more if booked online. They come with monthly, quarterly, half yearly and annual payouts, and a cu mulative option. The deposits have the highest ratings of FAAA/Stable by CRISIL and MAAA(stable) by ICRA.
While there are a few ESGthemed
equity MFs in India, there are no such debt funds. We compare HDFC’s Green Deposit with other regular FDs from NBFCs. Unlike bank deposits, NBFC de posits are not protected under DICGC’s insurance cover of up to 5 lakh (principal and interest). From a safety perspective, it’s best to invest only in AAArated NBFC deposits.
Purely based on returns, other AAA rated NBFC deposits offer a better deal compared to HDFC’s Green Deposits. Also, minimum tenure for Green De posits is as high as 33 months. Other regular NBFC deposits, with 1year and 2year tenures, may be more suitable given low interest rate scenario.
Given that the minimum tenure of 33 months itself is on the higher side, we restrict our comparison with peers to only this tenure. Even here, green deposits don’t score. The 33month Green Deposit offers rates from 5.90 to 6.10 per cent per annum on the non cumulative options and 6.10 per cent per annum on the cumulative option.
But HDFC’s 33month regular de posit offers 0.10 per cent higher on each of the respective options. That is, 6.0 per cent for the monthly, 6.05 per cent for quarterly and 6.10 per cent for halfyearly payout option, and 6.20 per cent both for annual payout and cumulative option. HDFC’s regular de posit rates are a tad better than those of the financially strong Bajaj Fin ance’s AAArated deposits rates as well. Senior citizens get 0.25 per cent more per annum on all these deposits.
Old wine in new bottle Rates on HDFC Green deposits, SBI Platinum deposits are lower than those on other FDs
FD WATCH
There are other ways
environment.
best one.
Here’s a low-down on the latest routes through GIFT platforms and curated portfolios
ALERTS
75 54 , , , , , , , 107 , 107.7 , - 99.27 . 962806 9.40
, , 22 2021 2haribhoomi.com
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Dear Madam / Sir,
Furnishing of Information as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and any other SEBI
Regulations, as may be applicable.
Subject: Newspaper Publication regarding Notice of Book Closure Dates.
1. Please find enclosed herewith copies of the advertisement, published in English daily newspaper (Business Line) and Hindi daily newspaper at registered office Yamunanagaer (Hari Bhoomi) on August 22, 2021, in respect of notice for book closure dates.
2. This intimation is also available on the website of the Company at www.isgec.com
3. The above is for your information and records.
Thanking you,
(S.K. Khorana)
Encl: as above
BUSINESS OFFER
FARM HOUSE / LAND / RESORTS
What head of income is the compensation received on compulsory acquisition of a house with plot taxable under? Or is it exempt?
RAJAN NA
Section 45(5) of the Income Tax Act, 1961 (the Act) deals with taxability of capital gains pursuant to compulsory acquisition of capital asset under any law. A house with plot is a capital asset and gains arising due to compulsory acquisition shall be taxed under the head ‘Capital Gain’. Depending on the period of holding the capital gains may have to be categorized as longterm or shortterm .
The query is related to tax deducted at source. Is it mandatory to file income tax returns, by only referring to Form 26AS? I am yet to receive Form 16/16a from the deductor. In another case Form 26AS doesn’t reflect amounts appropriately, partly they have allowed partly they have not given credit. I request you to please clarify what can be claimed as tax paid now, in ITR?
SIVALINGAM
Income earned during the financial year needs to be offered to tax while filing the tax return in India. An individual is required to collate details of all income earned during the financial year, like salary income, rental income, interest income, etc. and consider the same for tax filing, regardless of whether there has been tax deduction on such income. It may be noted that the details reflected in the Form 26AS are based on the withholding tax returns filed by tax deductor. It is important to reconcile the income and taxes reported in Form 26AS before filing the tax return. The central processing unit (CPC) checks the accuracy of the amounts offered in the tax return by comparing it with 26AS and raises queries in case of discrepancies. Therefore, in case of any difference in the amount, you are required to connect with the deductor so that necessary corrective action can be undertaken which should then reflect in Form 26AS.
TAX QUERY
SUDHAKAR SETHURAMAN
Send your queries to [email protected]
................CH-CHE
KUMAR SHANKAR ROY ..........................................
BL Research Bureau
Interest in directly investing in inter national stocks is growing in India and to cater to this, new vistas are opening up for Indian retail investors eager to diversify beyond domestic stocks. Spe cial platforms are coming up in Gu jarat International Finance TecCity (GIFT City) to enable the transaction of international securities. Currently, in vestors can take exposure to US stocks through online platforms, having tie ups with US brokers. We take a look at the newer ways of going global and how it compares with the current route.
GIFT way In the GIFT City, NSE International Ex change (NSE IFSC) will permit trading in select US stocks facilitated through the NSE IFSC platform. The offering will be in the form of unsponsored deposit ory receipts. In this route, market makers buy US stocks and issue depos itary receipts against shares that lie with custodian bank.
The entire trading, clearing, settle ment and holding of US stocks will be under the regulatory structure of IFSC Authority. Indian retail investors will
be able to transact on the NSE IFSC plat form under the LRS limits prescribed by RBI that permits resident individu als to remit up to USD 2,50,000 (1.8 crore at current rates) per financial year. Investors will be able to hold the depository receipts in their own demat accounts opened in GIFT City. This in dicates investors would need to open demat accounts with the entities based in GIFT City. Given the high prices of US stocks for eg. one Amazon.com Inc share costs $3100 (2.3 lakh) investors will be provided with an option to trade in fractional quantity/value. All the trades will also be covered under the investor protec tion framework at NSE IFSC. To begin with, NSE IFSC is expected to list depos itary receipts of 50 US stocks including Google parent Alphabet, Facebook, Amazon, Tesla etc.
India INX, BSE’s international arm, is also adding international stocks to trading, including shares from major USlisted companies via its wholly owned subsidiary India INX Global Ac cess IFSC. It proposes to offer stocks from the US, Canada, UK, Europe, Aus tralia, and Japan, covering about 80 percent of the investing universe. Res ident individuals can use the India INX platform under the LRS route. Eventu
ally, India INX in the first phase is ex pected to provide access to over 130 ex changes across 31 countries worldwide
How it compares The GIFT way of investing in global stocks offers distinct advantages over the existing route of direct investing where one opens a US brokerage ac count through online platforms such as Vested, Globalise, Stockal etc. Invest ing in global securities in the GIFT ex changes is likely to be more secure as the transactions will be overseen by IF SCA. Additionally, the GIFT way of global investing is likely to make the entire process easier and, importantly, it could be at a lower cost for Indian in vestors although we await exact pri cing details. Right now, online plat forms charge base plan opening fee of upto 499 per year or 399 onetime, while brokerage can be upto $2.99 per trade. Under the paid/premium plans, brokerage fees are virtually free gener ally, but account charges range from 2,50013,999 a year. There are costs in volved in the deposit process to fund US brokerage account, depending on the bank you use. Similarly, during withdrawals, the remitting bank will charge fee for the transfer. However, do remember that one would need to
watch out the liquidity/volume aspect and premium/discount on depositary receipts over actual US stocks when trading eventually begins.
Taxation remains a grey area too. On paper, IFSC is a taxexempt jurisdiction and so taxes such as capital gains tax, STT and stamp duty do not apply. How ever, domain experts opine that the taxfree status can be enjoyed only if a person or company located in IFSC campus is carrying those trades.
Readymade portfolios The nearly 50 international mutual funds arguably offer the best way to play international stocks and score over others in many ways. Firstly, these funds are managed by professionals who have done the research and are skilled at portfolio management. Two, most of the international funds are available for Indian investors only after their master fund has developed a trackrecord. In case of indexbased in ternational funds, the indices too have a demonstrable history. Three, MFs compress the costs linked to direct in vesting in global stocks into one single data point, with total expense ratio (TER) for direct plans ranging from 0.102.28 per cent. Four, direct global stock investing also brings along with it the hassles related to capital gain tax, withholding tax on dividend from for eign securities etc.
Beyond the international MF route, curated portfolios from ICICI Securit ies (ISec), which operates ICICIdirect, by virtue of a tieup with US investor advisor, Interactive Advisors, has been introduced. These portfolios of inter national stocks are built on models constructed by global fund managers such as Global X by Mirae Asset, State Street Global Advisors, Legg Mason, Wisdom Tree. There won’t be any brokerage on such transactions, but there is an asset management fee linked to the portfolio and investment strategy. There is also a minimum in vestment amount of $100. Some of the online platforms such as Vested, Stockal and Globalise also offer pre built stock portfolios based on differ ent strategies and themes. There may be an access fee depending on plans.
New roads open for global investing MARKET WISE
PATHS TO PROFIT
International mutual funds offer the best way to play global investment opportunities for retail investors compared to available options
SBI festival offers SBI has announced multiple offerings for their
retail customers ahead of the festive season.
It is providing a special interest concession of
25 basis points (bps) for customers applying
for a car loan via YONO. There is also 100 per
cent waiver on processing fees for car loan
customers who can also avail the facility of up
to 90 per cent onroad financing. For its gold
loan customers, SBI is offering a 75 bps cut in
interest rates. It has further waived off the
processing fee for all the customers applying
for a gold loan via YONO.
Muthoottu Mini NCDs Muthoottu Mini, a nondeposit taking NBFC in
the gold loan sector, is offering secured and
unsecured debentures (NCDs) of the face
value of 1,000 each. The coupon rates range
from 8.75 10.00 per cent per annum. The NCD
issue opened on August 18 and closes on
September 9, with an option of early closure
or extension. The minimum application is for
10 NCDs (10,000). While the secured NCD
comes with tenure of up to 50 months, the
unsecured NCD is available for 84 months.
Interest rates on home loans (%)
Institution
Bank of Baroda 6.75-8.35 6.75-8.35 6.75-8.35
Bank of India 6.85-8.35 6.85-8.35 6.85-8.35
Bank of Maharashtra 6.90-8.40 6.90-8.40 6.90-8.40
Canara Bank 6.9-8.9 6.9-8.9 6.9-8.9
Central Bank 6.85-7.30 6.85-7.30 6.85-7.30
HDFC Bank 6.75-7.50 6.75-7.75 7.00-7.85
ICICI Bank 6.75-7.3 6.75-7.45 7.00- 7.55
Indian Bank 6.80-7.40 6.80-7.40 6.80-7.40
IOB 7.05 7.05-7.15 7.15-7.3
State Bank of India 6.70 - 7.15 6.70 - 7.30 6.95 - 7.40
UCO Bank 6.90-7.25 6.90-7.25 6.90-7.25
Union Bank of India 6.8-7.35 6.8-7.4 6.9-7.4
HOUSING FINANCE COMPANIES (Floating rates)
Tata Capital ≥6.9 ≥6.9 ≥6.9
HDFC 6.75-7.65 6.75-7.90 7.0-8.0
LIC Housing Finance 6.66-7.60 6.66-7.80 6.9-7.90
Note: Rates that vary with tenures within the specified loan amounts are indicated as a range. Fixed interest rates may be subject to a revision after a specified tenure. Rates may also apply only for a definite period and change to floating thereafter. Data taken from respective bank’s website as on August 20, 2021. Contributed by BankBazaar.com, an online marketplace for comparing loans and insurance products.
CM YK
Scan & Share
MAULIK MADHU ..........................................
BL Research Bureau
Last week, housing finance company, HDFC and the country’s largest bank, SBI launched new fixed deposits. While the HDFC Green & Sustainable Deposit is targeted at those motivated by the ESG (environmental, social, and governance) theme, the appeal of SBI’s Platinum Deposit Scheme lies in the slightly higher rates compared to the bank’s existing deposit rates.
That said, these deposits don’t seem attractive, across both short (i.e. less than one year) and long tenures. There are many other higherreturn fixed deposit options, both from banks and nonbanking financial companies (NBFCs) that investors can consider. With interest rates expected to move up, though not any time this year, investors can go for 1–2year de posits (and not very longtenure ones) to benefit from a potential rate hike.
SBI Platinum doesn't shine The scheme comes with three tenure options – 75 days (2.5 months), 525 days (around 1.5 years) and 2250 days (6 years and 3 months) with respective interest rates of 3.95 per cent, 5.10 per cent and 5.55 per cent for under 2 crore deposits. These rates are 0.05 to 0.15 percentage points higher than those offered on SBI’s existing depos its of such tenures.
Senior citizens get 4.45 per cent and 5.60 per cent on the Platinum 75 days
and 525 days deposit respectively. Plat inum 2250 days deposit offers 6.20 per cent (rate applicable on the SBI WE CARE Scheme), an extra 0.65 per cent for senior citizens. The Platinum de posit scheme is open for investment until 14 September 2021.
Deposits from the Post Office and many public sector banks are a good alternative to SBI Platinum deposits. The ultrasafe Post Office 1year and 2 year time deposits (interest paid an nually, calculated quarterly) offer 5.5 per cent per annum.
This is better than the 5.10 per cent offered to nonsenior citizens on SBI’s platinum 525 days deposit.
Many other public sector banks too offer 5.10 5.20 per cent on their 12 year deposits. SBI’s 5.6 per cent for senior citizens is a tad better than the 5.50 per cent on Post Office deposits
but is similar (5.60 – 5.70) to that on many public sector bank deposits.
HDFC green deposits flash amber HDFC’s Green & Sustainable Deposit (Green Deposit) is for those enthused by the popular ESG theme. Money mo bilised through these deposits will be used to fund projects supporting the UN’s sustainable development goals. These deposits have tenures ranging from 33 to 120 months and interest rates from 5.75 to 6.55 per cent per an num on deposits of up to 2 crore. De posits of up to 50 lakh will get 0.10 per cent more if booked online. They come with monthly, quarterly, half yearly and annual payouts, and a cu mulative option. The deposits have the highest ratings of FAAA/Stable by CRISIL and MAAA(stable) by ICRA.
While there are a few ESGthemed
equity MFs in India, there are no such debt funds. We compare HDFC’s Green Deposit with other regular FDs from NBFCs. Unlike bank deposits, NBFC de posits are not protected under DICGC’s insurance cover of up to 5 lakh (principal and interest). From a safety perspective, it’s best to invest only in AAArated NBFC deposits.
Purely based on returns, other AAA rated NBFC deposits offer a better deal compared to HDFC’s Green Deposits. Also, minimum tenure for Green De posits is as high as 33 months. Other regular NBFC deposits, with 1year and 2year tenures, may be more suitable given low interest rate scenario.
Given that the minimum tenure of 33 months itself is on the higher side, we restrict our comparison with peers to only this tenure. Even here, green deposits don’t score. The 33month Green Deposit offers rates from 5.90 to 6.10 per cent per annum on the non cumulative options and 6.10 per cent per annum on the cumulative option.
But HDFC’s 33month regular de posit offers 0.10 per cent higher on each of the respective options. That is, 6.0 per cent for the monthly, 6.05 per cent for quarterly and 6.10 per cent for halfyearly payout option, and 6.20 per cent both for annual payout and cumulative option. HDFC’s regular de posit rates are a tad better than those of the financially strong Bajaj Fin ance’s AAArated deposits rates as well. Senior citizens get 0.25 per cent more per annum on all these deposits.
Old wine in new bottle Rates on HDFC Green deposits, SBI Platinum deposits are lower than those on other FDs
FD WATCH
There are other ways
environment.
best one.
Here’s a low-down on the latest routes through GIFT platforms and curated portfolios
ALERTS
75 54 , , , , , , , 107 , 107.7 , - 99.27 . 962806 9.40
, , 22 2021 2haribhoomi.com
,
:
9 6-7
6-7
, ,
:
:
- , 2.5 ,
, , , , 41
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