Free fall: Volatile week erodes one-year gains for large-cap schemes

Large-cap schemes that were holding fort among the actively-managed plans have started giving in amid the rise in market volatility.

These schemes have seen most of their one-year returns getting wiped off in the last seven trading sessions. As of September 27, the average returns for these schemes stood at 10.3 per cent. Following last week’s sell-off, the one-year returns have fallen to just about 1.5 per cent, shows the data from Value Research. Experts say selling by foreign institutional investors (FIIs) is hurting large-caps as FIIs investments are largely parked in them.

“Investor sentiment in non-banking financial companies (NBFCs) — several of which are large-cap companies — has got hit as a result of the IL&FS crisis. Even big names like HDFC have not managed to escape the selling pressure seen in the NBFC space. The global headwinds have also hit investor sentiment,” said a fund manager, who wished not to be identified.

SBI in international bond market to raise nearly $500 mn in green bonds

The nation's largest lender State Bank of India Wednesday raised the first tranche of USD 650 million through a maiden green bond offering, which is part of its planned USD 3 billion in such funds for onward lending to green projects.

The five-year dollar money is priced at the US treasury plus 165 basis points, while from for an British investor the coupon will be 3 Libor plus 151 bps.

"SBI has successfully priced our maiden green bonds, a five-year money for USD 650 million at T+ 165 bps, corresponding to 3L + 151 bps approximately," a merchant banking source official said.

The money is raised through the bank's London branch, the source added.

With this issue SBI will become compliant with the global standards as prescribed by the Climate Bonds Initiative, a global not-for-profit investor-focused organisation.

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Long queues again? ATMs go dry as many states face cash crunch: Top updates

A cash crunch has been reported in several states of India -- Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana. People are facing a huge monetary crisis, with a majority of automated teller machines (ATMs) running out of cash. In Bihar's Patna several ATMs have gone 'out of service' causing inconvenience to the locals.
Taking stock of the situation, Union Finance Minister Arun Jaitley said: "We have reviewed the currency situation in the country; there is more than adequate currency circulation and it is available with the banks... a temporary shortage caused by the sudden and unusual increase in some areas is being tackled.

Here are the top developments in the crisis caused by a sudden shortage of cash across several states and what the government is saying:
1. Life gets miserable for many Indians, especially traders: Despite the currency flow in the economy going back to the pre-demonetisation level, ATMs are going dry making life miserable for many residents, especially traders. Many are running from one ATM to another in search of currency notes.

SBI cuts affordable home loan rates to 8.35%; lowest in market

India's largest lender, the State Bank of India (SBI), on Monday announced a steep reduction of 25 basis points (bps) in affordable housing loans to 8.35 per cent for new borrowers.

Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing.

For male borrowers, the limited period offer is valid till July 31 and the reduction is 20 bps to 8.40 per cent, SBI Managing Director for national banking Rajnish Kumar told PTI in a conference call.

The new rate reduction of 25 bps for women will be for salaried borrowers. For non-salaried borrowers, it will be a 20 bps cut.

Similar rates will be applicable for male salaried and non-salaried borrowers.

One percentage point is 100 bps.

"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs," he said.

The new rates will be effective from Tuesday.

"This is giant leap to give a fillip to the affordable housing segment keeping the Prime Minister's vision of providing 'housing for all' by 2022," Kumar said, adding that the lender now offers the lowest rates in the industry.

With a home loan book of Rs 2.23 lakh crore, SBI leads the segment with 25-26 per cent market share, Kumar said further.

However, he is of the view that the new offer may not push up SBI's market share significantly as 45 per cent of its 2.23 lakh crore home loan book is under the Rs 30 lakh bracket.
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It's a shame Indians don't want to pay taxes: SC talks tough on Aadhaar

The Supreme Court on Wednesday asked why there was no objection from lawmakers on the government’s decision to make Aadhaar mandatory for making permanent account number (PAN) cards, a move which was given effect by the latest budget from July 1.

“542 persons are sitting in Parliament, why do they not object to it? If they are not objecting, why should we go into it,” a Bench comprising Justices A K Sikri and Ashok Bhushan said.

When it was told that the Centre has earlier made a statement in the apex court that it would not make Aadhaar mandatory, the Bench said, “They cannot be bound by it. It cannot preclude Parliament from enacting a statutory provision.”

The court was hearing three petitions challenging the constitutional validity of section 139AA of the Income Tax (IT) Act. Section 139AA, introduced through the latest Budget and the Finance Act, 2017, provides for mandatory quoting of Aadhaar or enrolment ID of Aadhaar application form for filing of I-T returns and making application for allotment of PAN with effect from July 1, 2017.

The Bench also observed that tax evasion existed in India and it was a “shame” that citizens do not want to pay taxes.

The court said there was no doubt that Aadhaar should be voluntary and observed since tax evasion existed, the government could bring in new statute to stop such “leakage”.

Defending the Centre’s stand to make Aadhaar mandatory for filing of income tax returns and to apply for PAN, Attorney-General Mukul Rohatgi referred to around 10 lakh fake PAN cards and said Aadhaar was the only system which could prevent duplication or fake cards.

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Apple to be worth at least $824 bn in 2017, predict analysts

Benefiting from its expensive 'plus' models and rising demands of its products, Apple Inc will be worth at least $824 billion this year, analysts have predicted.

Apple's shares already soared more than 16 per cent to fresh highs during the second quarter but analysts are optimistic the stock has much more room to grow, MarketWatch reported on Monday.

Canada-based global investment bank RBC Capital Markets on Monday lifted its 12-month price target to $157 from $155 and reiterated an outperform rating.

That would increase Apple's market capitalisation to $824 billion from $740 billion currently. Apple's stock hit a record high of $144.77 on April 4, the report said.

RBC analyst Amit Daryanani also increased his March-quarter iPhone estimates and fiscal 2017 revenue estimates, saying trends indicate consumer preference for Apple's more expensive plus models, which have contributed positively to average selling prices.

While the company's third-quarter outlook "could come modestly below estimates" as consumers delay planned upgrades ahead of the iPhone 8 launch in September, its large installed base and attractive valuation make it worthy of investment despite muted expectations.

Analyst at Pacific Crest Andy Hargreaves suggested that Apple is struggling with the optical fingerprint functionality expected on the OLED iPhone, which could lead to delays or the removal of it.

"While this creates some risk of production delays, at this point we do not believe it materially threatens volume through the coming iPhone cycle," Hargreaves was quoted as saying.

According to a report in USA on Tuesday, Apple co-founder Steve Wozniak believed that Apple, Google and Facebook will be bigger in 2075 and dominate the world.

Shares of Apple inched 0.6 per cent higher to $141.12 on Monday. The company will announce its earnings for the second fiscal quarter (first calendar quarter) of 2017 on May 2.

Apple had $246.1 billion cash at the end of its last fiscal quarter.
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Rs 48,000 cr Delhi Budget: AAP focuses on health, education, no new taxes

Breaking News - A Rs 48,000-crore budget for the national capital was today presented by the AAP government, laying major focus on improving transport, health, water distribution and education infrastructure.

In its third Budget, the Arvind Kejriwal government abolished the plan and non-plan expenditure heads and presented it in terms of revenue and capital classification in line with the Centre's decision.

There was no proposal on levying any new tax.

In a first, Deputy Chief Minister Manish Sisodia, who holds the finance portfolio, also presented an "outcome budget" which he said would act like a "contract" between the government and the people.

Sisodia asserted that the economy of the state will grow "despite demonetisation".

At the same time, he said note ban has led to contraction in the city's estimated GSDP for the ongoing financial year (at constant prices) although it will still be higher than the projected growth at the national level.(READ MORE)

Govt asks SBI to reconsider minimum balance penalty

BREAKING NEWS - The government on Monday asked State Bank of India (SBI) to reconsider its decision to levy penalty on non-maintenance of minimum balance, which the bank plans to hike manifold from April 1 impacting over 310 million savings bank account holders.

SBI, according to a source, has also been asked to reconsider charges it proposes to levy on cash transactions and ATM withdrawals over specified limits.

The country’s largest lender has announced imposing penalty ranging from Rs 20-100 on non-maintenance of minimum average balance (MAB) in savings bank accounts from April 1.

The penalty is as high as Rs 500 in case of current accounts.

The penalty for breach of MAB is being reintroduced after a gap of five years.

The bank has also increased the minimum balance requirement by many times, which is as high as Rs 5,000 for account maintained with branches in six metro cities.

SBI has also imposed restrictions on withdrawals of cash from its branches as well as ATMs. These will attract charges after certain specified limits.(READ MORE)

Your Loan Eligibility Holds the Key to Your Dream Home

LATEST NEWS – Have you ever been hounded by telemarketers urging you to apply for a loan? Calls, text messages, WhatsApp or even meeting you in person, representatives of financial companies leave no stone unturned when it comes to convincing you to take a loan.

But how is the LOAN ELIGIBILITY application processed? Do lenders really bend over backwards to hand you the loan cheque? It does not quite work that way.

Yes, sales personnel employed by financial institutions are aggressive in their attempts to lure you. They have to be; their commissions depend on it. And if one takes the bait and applies for a loan, the situation is likely to change by the time the application is processed.

It is the borrower who is expected to satisfy the credit parameters and fulfil all the eligibility criteria for the Home Loan.

Let’s get down to the basics. What do you think is the main eligibility criteria for taking a Home Loan?

The simple answer is the borrower’s ability to repay the loan.

This means the income of the loan applicant must be enough to pay the instalments on time. The lender provides a schedule for paying the equated monthly instalments (EMIs).

With interest rates favourable, now is as good a time to take a Home Loan as any. And non-banking financial companies (NBFCs) such as BAJAJ FINSERV offer instant approvals and Home Loans at attractive interest rates when you apply online.

Find out how:(READ MORE...)

Higher tax mop up reflects no slowdown post note ban: Jaitley

Latest Business News - Highlighting the impact the 'currency squeeze', as a result of demonetisation, has had on revenue collection in the country in the months of November and December last year, Union Finance Minister Arun Jaitley on Monday said that collection figures have moved up in all states.

"The big picture is that the Direct Tax collections have moved up. The Indirect Tax collections have also significantly increased," Arun Jaitley told a press conference here.

The Finance Minister, who presented the revenue collection data report for the past two months, said the Direct Tax collections are 12.01 percent more than the collections for the corresponding period last year for the first three quarters of the ongoing financial year - from April, 2016, to December, 2016. This collection, the report says, is 65.3 percent of the total Budget Estimates of Direct Taxes for F.Y. 2016-17.

Jaitley said, "The Direct Taxes include the corporation tax, the personal tax and the likes — all taken together."

The collections under advance tax stand at Rs 2.82 lakh crore, which is 14.4 percent higher than the figures for the corresponding period of last year. CIT advance tax is growing at 10.6 percent while PIT advance tax has registered a growth of 38.2 percent.(Read More)