Results of Reliance Industries, Axis Bank and Indusind Bank - Should you buy these stocks ?

 Quarter 2 Results of most of the companies are coming day by day , but most significant of them is that of Reliance Industries - the highest market cap of All Indian listed stock.

Result of RIL has been above expectations even though GRM has fallen but other growing avenues such as Telecom and Retail has given excellent contribution on its growth as well as margin front.

So our Research gives a Buy Call on Reliance Industries with target of 2350 in 3 months time from the current level of 2050 resulting in upside gain of 10% in three month period which is excellent which excludes any dividend if any declared by the company in the intervening period.

Our Second Analysis is on both Axis as well as Inusind Bank , although both the banks have shown decline in the profit but the undercurrent is very good in both these new generation private sector bank as they are poised to grow at excellent level from next year onwards people who are having 2 to 3 years time frame should definitely buy both these stock with following targets.

Axis Bank , Current Price INR 490 to 950 in 2 years time gain of almost 100% in two years time.

Indusind Bank , Current Price INR 585 we are expecting it to touch the levels of 1600 in 3 years time resulting in gain of 150% in three year time frame.

Do keep visiting for the research and analysis and investment tips on our blog

Any query do post in comment section.

Govt. to Infuse INR 20,000 Crores in Public Sector Banks

 Good news for the India's Public Sector Banks which are already struggling due to series of bad loans and reduction of market share , the govt will infuse Rs. 20.000 Cores in all the Public Sector Bank. 

The amount to individual banks will depend upon their requirement and other regulatory norms of exchange listing. The important thing here to look is that banks be it be private or public sector all of them are grappling with older and newer NPA which have started to mount due to Covid 19 Pandemic and extended lockdown due to which the business activities are yet to start with full capacity.

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Should I buy the shares of Listed Public Sector Banks ?

As a regular reader of our blog we have been constantly receiving queries and suggestions that on each news if it is related to listed stock companies we should give our analysis on buying or selling of that company or sector shares.

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So our analysis shows that your should not jump on to buy the shares of Public sector banks by just reading the above news or upon recommendation on the main stream business news channels or business newspaper or brokers. All of them are here to sell the stories to earn the quick bucks for TRP or subscription. 

We would suggest that one should better wait the opportnities to buy these PSB stocks only after they correct to 10-20% from the present levels which is very likely to happen when broader market corrects in coming days.

Your Comments & Suggestions are welcome in comments section,

SBI Mutual Fund Chief is new State Bank of India MD

 The appointment committee of Cabinet has approved SBI Mutual Fund Managing Director Shir Ashwani Bhatia's appointment as MD, State Bank of India.

His appointment is unitll hsi retirement in May 2022.

Mr Bhatia has been appointed in place of Mr P K Gupta, who completed his term earlier this year.

Top Stock Recommendation August 2020

 Following are the top stocks recommended by us as per their current price, earning potential and return generation capacity so just relax and buy these stocks.

If you want to avail the paid service of our , kindly leave in your details in the comments section we will be happy to contact you.

1. Lemon Tree Hotels : CMP 28, Target for One Year 44 and target for three years 120
2. PVR : CMP 1200, Target for One Year 1600 and target for three years 2800
3. INOX Leisure : CMP 240, Target for One Year 320 and for three years 480
4. SBI Cards : CMP 800, Target for One Year 1300 for three years 3500

For any queries of suggestions do post in comment section.

Senior Citizens / Retirees should look beyond Bank Fixed Deposits

 

Senior Citizens and Retirees whose sole source of income is Interest earned form the Fixed Deposits they do in the Banks , especially Nationalised banks such as State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda in all there are 12 Government owned banks operating in India apart from their private counterparts for better safety.

The new problem which they have started to face is the case of High inflation resulting in increased cost of living and falling interest income.

Official data released on Thursday showed that consumer price index (CPI) based inflation for July was at 6.93% much above the Reserve Bank of India limit of 6% at a time when RBI has been constantly from past 2 years reducing the policy rates to boost consumption and spur economic revival which has taken the backstage since the start of demonetisation of old 500 and 1000 notes.

Now the rates for Senior Citizen Fixed deposit schemes by banks vary in the range of 6 % to 7 % on maturity from 1 to 10 years and for lower tenure the interest rate is even lower. If we compare this with the adjusted inflation the real rate of return comes to zero or negative means these retirees and senior citizens have so shell out more from their pocket to makeup for the increased cost of living.

Here we have not calculated the taxation on the Fixed deposits if we include that we will see the post tax returns will vary in the range of 4 to 5% which is clearly less than what they get from their banks on their hard earned deposits which they accrue whole through their life for livelihood in old age.

Hence they should also look for alternate investment options which will make good for the inflation adjusted returns, in our next article next week we will detailed out the options where in senior citizens and retirees can invest to get good returns and extra safety for their money.

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You can post your queries and views in the comment section we will be happy to resolve the same

RBI to Give 57, 128 Crores Dividend to Center

 

 The Central Bank of India , the Reserve Bank's board has approved the transfer of INR 57,128 Crores as surplus to the government for fiscal 2019-2020, in line with what the finance ministry had budgeted, but the payout will fall well short of what is needed to cover the massive fiscal gap caused due to Corona Pandemic resulting in dwindling tax collections.

Reserve Bank of India every year give the divided to Government of India and the amount varies from year to year depending upon the earning of RBI.

The RBI major source of income is OMO ( Open Market Operations )  through which is issues and purchases various bonds.

Following are the factors or source of RBI income explained in nutshell.

 India Domestic Earning

1.  A. Earnings from interest on holding of domestic securities for conducting OMOs 
2.  Interest on loans & advances to centre and state govts/banks & FIs
3. Discount/exchange /commission/ rent
   
   
   Other Foreign sources:
   1. Earnings from foreign currency assets 

Mutual Funds Add 5.6 Lakh New Accounts / Portfolio in July 2020

 The Mutual Fund Industry added over 5.6 Lakh investor accounts in July 2020 taking the total tally to 9.2 Crores.. Mostly on account of contribution from debt schemes in comparison the Mutual Fund industry has added 5 Lakh new folios in June 2020.

According to the data released form AMFI ( Association to Mutual Funds in India ), the number of folios with 45 fund houses rose to 9,21,05,737 at the end of last month from 9,15,42,092 at June end registering a gain of 5.63 Lakhs folio last month of which more than 4.5 Lakhs were added in debt funds.

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Our Analysis

The high growth in folio or number of accounts , should not be seen as new fresh investors have joined its only the existing ones who invest through brokers in regular Mutual Funds inspite of having their existing folio in a Fund House for brokerage purpose the advisors / agents put in their own code resulting in generation of new folio of the same investors.

The real data would be to give the number of new additions based on the PAN Number ( Permanent Account Number ) of a person we may see the figure as stated above fall down to One Lakh only.

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You can post your comments and queries in the comments section we will be happy to reply to our queries.

Again Alleged Fraud by Top Private Banks for Loans

 

Two of the country top new generation private sector banks Axis Bank and Kotak Mahindra Bank have complaint of alleged fraud to the tune of INR 1200 Crores against travel and leisure company Cox & Kings Limited.

The investigation has been started by Economic Offense Wing of Mumbai City Police but officials of the travel firm say that its an routine inquiry.

The preliminary enquiry was already registered against the company on the basis of complaint from a third bank that is Indusind Bank which has alleged a default in payment of INR 239 Crores.

Now Kotak Bank in its complaint, stated that it has been extending financial faciliteis to the travel fir since 2012, and on June 24 , 2019 outstanding amount stood at INR 175 Crores.

Add caption

After default Bank appointed PWC ( Price-Water-House-Coopers ) to do a forensic audit. Its two draft report and mentioned irregularities and fraudulent practices of some of oice beares of the travel company.

The first draft interim report also said that there was receivable of INR 450 Crores from 15 parties and all these transactions were suspicious in nature and that the bank had all reason to believe they were fictitious. These 15 parties had common and on teh same day in the travel firm's system in August 2012, the police said. ON a visit to the addresses, it was found that the parties were not located there. Kotak Mahindra Bank said it has incurred a loss of 175 Crores.

As for Axis Bank it submitted a complaint that some office-bearers of the travel firm and its sister concerns had availed loan facilities to the tune of INR 1030 Crores and cheated the bank by not repaying. In both cases, FIRs are yet to be registered.

The the investigation & probe is being supervised by chief of EOW Mr Rajvardhan Sindha, and headed by inspector Kishore Parad who led the Punjab & Maharashtra Bank,s Rs 4700 Crores con probe.

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Our Analysis and Questions :

1. Why every time if any NPA happens then bank declare the NPA account as fraud.

2. It was more prevalent with Public Sector Banks in India now we are seeing Private Banks also following the same footstep. Can it be the end of dream run for Private Banks by charging higher interest on riskier assets.

3. Why not during the annual assessment bank could not see the amount was going into bogous / shell companies ?

4. What was banks Internal and External auditors doing with their inspection of the said loan ?

5. In all we can say that , if borrowers not giving back the loan then make them as fraud. The story is same with both Public Sector banks and Private sector banks as they banks do not want to take blame on their top management for NPA of the accounts .

6. Your comments & discussions are awaited.

Business - Financial - Banking News of the day 21 May 2020

• Finance Minister Nirmala Sitharaman will hold a meeting on Friday via video conference with chief executives of PSBs and Chairman of SBI to review the credit flow into the economy from these banks. The Friday meeting will also be attended by NABARD, SIDBI CMD and MD of National Housing Bank. -Business Line 

• The Government is considering a 5-7% interest subvention on loans to street vendors to make the targeted ₹5,000-crore financial assistance scheme popular amid apprehensions that organised lenders would baulk at lending to the bottom of the pyramid. The interest subvention is likely to be in line with the benefits being given to self-help groups where women borrowers take loans at 7 % interest and the government bears the difference between the lending rate of banks and the rate charged on borrowers, people familiar with the matter said. -Economic Times

•  Banks and financial institutions expect much heavy lifting through credit support, pegged at over Rs 11 trillion in FY21, in the days ahead. As a result, lenders have sought the easing of NPA norms, one-time restructuring, and extension of the moratorium till August-end for borrowers affected by the Covid situation. Senior bank executives said the IBA has already approached the RBI with a plea for easing regulatory norms, so as to support borrowers hit by the outbreak. -Business Standard 

• Bank credit rose 6.52% year-on-year to Rs 102.52 trillion, while deposits grew 10.64% to Rs 138.50 trillion in the fortnight ended May 8, according to latest RBI data. In the fortnight ended May 10, 2019, bank loans had stood at Rs 96.24 trillion, and deposits at Rs 125.17 trillion. -Business Standard Leading banks have reached out to the Ministry of Corporate Affairs to fast-track 40 high-value insolvency cases that have been resolved and are awaiting approval from bankruptcy courts. With prospects of almost zero recovery over the next few months, banks are worried that buyers may call off deals or reduce valuations significantly if the final approvals are delayed due to stalled economic activity. -Economic Times

•  Bandhan Bank today estimated that about ₹260 crore of loans to 65,000 micro borrowers may have been impacted by cyclone Amphan that tore through parts of West Bengal and Odisha. In a statement to the stock exchanges, the bank said it expects the Amphan-affected portfolio to regularise by the Dec quarter of FY21. -Livemint

•  Standard Chartered Bank has announced the extension of medical benefits and domestic relocation benefits to LGBT+ (lesbian, gay, bisexual, transgender) partners of all employees in India, as part of efforts to further its diversity and inclusion agenda, said a company statement issued today. -Economic Times Paytm has recorded around 4-fold jump in payments received by merchants in its new ledger service amid the coronavirus pandemic, a senior Co official said today. -Moneycontrol.com

•  Bajaj Allianz Life is not expecting significant growth for insurance industry this year due to coronavirus impact on the economy, Tarun Chugh, MD & CEO of Bajaj Allianz Life Insurance has said. However, the insurer said, customers will like to buy policies online. -Business Line A working group constituted by the IRDAI has recommended that banks and financial institutions should not be permitted to cover loan defaults of sellers under trade credit insurance. -Moneycontrol.com

•  The fiscal outgo for the Union Government towards the ₹20.97-lakh crore Aatmanirbhar Bharat Abhiyaan package, announced last week by the Finance Minister, will be about ₹3-lakh crore over two fiscals ― ₹1.8-lakh crore in fiscal 2021 and ₹1.17-lakh crore in fiscal 2022, according to an analysis by Brickwork Ratings (BWR). The credit rating agency observed that banks and other financial institutions will have to do the heavy lifting under the package. -Business Line

•  SEBI today said that credit rating agencies can deviate from the 90-day period required to upgrade the rating of an entity from default to non-investment grade. The credit rating agencies (CRAs) can take the decision on case-to-case basis, the SEBI said in a circular. -Business Line

•  Calling India's Rs 20.9 lakh crore stimulus inadequate in providing for recovery of an economy pummelled by COVID-19, former RBI Governor Raghuram Rajan has said the package gives free foodgrains but migrant workers, rendered jobless by lockdown, need money to buy milk, vegetables and cooking oil and pay rent. The world is facing the greatest economic emergency and almost any resource is inadequate, he said. -Economic Times

•  The COVID-19-induced lockdown saw a spurt in crybercrimes in India with Kerala recording the highest number during the period, according to an analysis of IT security solutions provider K7 Computing. Kerala state as a whole saw around 2,000 attacks during the period, the highest thus far in the country. This was followed by Punjab with 207 attacks and Tamil Nadu at 184 attacks, the statement said. -Economic Times

•  USD/INR 75.61 Sensex 30932.90 (+114.29) Nifty9106.25 (+39.70) Nifty Bank 17735.10 (-105.10 ) -21-05-2020 

Reliance Industries to raise Rs 10,600/- Crores

India's largest listed company Reliance Industries has informed that on Tuesday 12 May 2020 they shall be raising a total of 10,600 Crores in three tranches via bonds of different tenures.

The rating of Reliance Industries Long Term bond has been rated as AAA which marks highest safety which in turn gives investors the confidence for safeguarding of their money if invested in the said bonds of the company.

Following are the full details of fund raising by Reliance Industries via bonds in the year 2020-2021.

• Rs 4,235 Crores at coupon rate of 7.05 for three years
• Rs 825 Crores at coupon rate of 6.95 for three years
• Rs 5,000 Crores at coupon rate of 6.95 for two years

What is fund of fund in Mutual Fund ?

Today we will explain what is fund of fund in Mutual Fund parlance. Many a times your would have come to notice this term and you may be inquisitive to know the meaning of the same.

A Fund-of-Fund is basically a Mutual Fund that invests in other mutual fund schemes or ETF ( Exchange Traded Funds ).

So Meaning of Fund of Fund in simple language is " A Mutual Fund investing in series of other existing Mutual Funds ".

Here in our country FOF short form of Fund of Fund are used to invest in ETFs including those that invest in Gold and Equity indices.

Also there are funds of funds which that invest in units of international funds which in turn invest in units of global funds.

Total expenses is capped to 2% by SEBI ( Securities and Exchange Board of India ) a statutory body which monitors capital market and mutual funds in India.

Yes Ban looking to raise 12,000 Crores by September 2020

Medium sized new generation bank Yes Bank has announced that it is looking to raise 10 to 12,000 Crores through various fund raising plans such as Rights Issue, Qualified Institutional Placement or follow on public offer.

The Bank has to raise minimum 4,000 Cores to meet the regulatory requirement this year.

Meanwhile Yes Bank declared its Q 4 results which showed a profit of more than 2,600 Cores which is very much healthy sign for the days to come for this bank.

We had already initiated a buy call on this bank. People looking for multibagger returns in coming 2 to 3 Years should buy the Yes Bank stock now trading at Rs 27.

The stock is available at very very cheap price due saga of events which has happened in recent pasts but bank is having strong fundamentals and good retail base of clients as well as state of art technological investments which makes is way much ahead than any other banks of our country especially public sector banks.

ED Chargesheets Rana Kapoor & Family in Yes Bank Case

The Enforcement Directorate ( ED ) has filed its first charge sheet in the Yes Bank money laundering case . It has named its founder and former chief executive Mr. Rana Kapoor , his wife and three daughters of family for receiving around 600 Crores of India Rupees kickback in for favouring the questionable loans.

The loans given to several firms including DHFL Indiabulls group became sore of the eye for media and central bureau as the companies to whom loans were sanctioned started to default on their payments.

Analysis :

We have to accept this fact that the technology and innovation which Yes Bank brought to Indian banking industry is really appreciable and world class. All the mobile application based loans companies are using the Cash Management Services of Yes Bank only , and on the larger front the home grown giant cab aggregator OlA cabs along with other several companies involved in payment , collection & reconciliations are using the services of Yes Bank only.

Yes Bank and Kotak bank were the two banks in 2002 which got licence from Reserve Bank of India and both of them got listed on the bourse and given multifarious returns to its shareholders and investors.

It the sheer failure of government  central bank and several other government affiliated agencies which are always known for their waking up after the events happened for not noticing the fallacies in the banks balance sheet and loss of internal control.but as always the blame was put the man who owned and made the Bank to rise to a good respectable and reputable level.

Should you invest in Yes Bank shares now ?

Our first answer is Yes to Yes Bank shares now.The stock is trading at Rs 28 on Bombay Stock Exchange at closing hours today.

Its like a gold mine share now , with balance sheet getting cleared from the previous glitches in a quarter or two and strong presence of now default retail loans will push the profitablity of bank to very good levels.

The stock is available at very very cheap levels as compared to state of art failed public sector banks of our country which are still trading at very high valuations and always given loss to their investors and share holders.

Buy the share of yes bank for target of 60 by December and if you have holding period of 3 years then you will definitely see the levels of 500 very easily.

Reliance Industries Sells further stake in Jio

Reliance Industries Limited said on Monday that it has shall be selling around 1.15% stake in it telecom business Reliance Jio unit Jio Platforms Limited to PE ( Private Equity ) investor Silver Lake Partners for INR Appx. 5,650 Crores.

Last week only RIL had sold around 10% stake to United States social media giant Facebook.

The fund received through the stake sale will be used to pare the debt of the parent Reliance Industries which has sought to become debt free by year 2021.

Delhi High Court gives interim relief to Indiabulls Housing Finance

A division bench of the Delhi High court on Wednesday stayed an interi order of a single-judge bench that has prohibited coercive action against mortgage lender Indiabulls Houisng Finance Ltd (IHFL) for failing to pay its dues to non-covertible debentures ( NCD ) holders.

The two - judge bench of the Delhi High Court has listed case for final arguments on May 4, 2020

Also Read : Is Indiabulls Housing Finance worth investing now

Vodafone Idea to get INR 733 Crores tax Refund

In an good news for India's Telecom giant after so many years of operation in India, the Supreme Court on Wednesday directed government to refund 733 Crores to Vodafone Idea Ltd in a tax case related to the year ended March 2015 for which assessment has been completed but dismissed the company's plea seeking refunds for three years following that as scrutiny of tax filings is pending.

Also Read our Article : Is Vodafone Idea stock worth investing now ?

Bombay Stock Exchange allows commodity derivatives to trade in Negative

The oldest stock exchange of Asia Bombay Stock Exchange ( BSE ) has made changes in its system to allow for trading in commodity derivatives at negative prices, following the collapse of Unites States crude oil futures last week.

The Indian exchange's BOLT Plus trading system has been modified to accept orders and execute trades at negative prices, BSE said.

The May contract of the West Texas Intermediate ( WTI ) crude has closed at minus $ 37.63 on 20th April as lockdowns following the covid-19 induced lockdown crushed demand for the commodity.

Govt of India extends for for sale of Air India by 2 Months

Government of India has extended deadline for Sale of National Carrier Air India by 2 Months.

• Last date to submit the bid for Sale of Govt owned Airlines has been extended till March 31, 2021
• Aviation sector has been impacted heavily , due to impact of Covid 19 pandemic owing to lockdown of whole country as well as global lockdown.
• Govt. is expecting to receive the good valuation of the Indian National carrier and it expected to get the valuation of 2 Lakh Crores or around 3 Billion US dollors.
• Government of India has reduced the debt burden of Air India to around 23,200/- Crores from the levels of 56,000/- Crores for getting the valuation with regards to its peer carrier like Indigo, which is largest Airline of India having 40% market share.

Important Financial News for week 19 to 26 April 2020

• Franklin Templeton India has informed that they have shut down 6 of their debt funds , and amount will be paid to investors in phased manner as and when money is received from from the securities maturing on their due dates.
• Banks have parked more than 7 Trillion Rupees with the Central Bank i.e., Reserve Bank of India which is highest in recent times , as they are afraid of lending the bulk amount to NBFC fearing repayment delays.
• PhonepPe has informed that they are eyeing to become profitable by 2022.
• Mid sized Indian it firm Mindtree has declared their q 4 results which are better than the market expectations and their q 4 profit now stands at 206 Cores.
• Third largest public sector lender after State Bank of India and Punjab National Bank , Bank of Baroda has announced that they are planning to raise Rs 13, 500 Crores over a period of 1 years through mix of both debt and equity and also planning to sell shares to their staff under employee stock options schemes at a discount.
• Tata Steel to raise Rs 5,000 Crores via NCD and that too through private placements hence retail investors will not be getting chance to subscribe the same.
• Due to slump in demand India's number one food delivery mobile app Swiggy has informed that they shall be laying off 500 cloud kitchen staff.

Facebook buys 9.9% in Jio Platforms for Rs. 43, 574 Crores ( $ 5.7 Bn )

Facebook Inc. has bought a massive 5.7 Billion Dollar investment in Reliance Industries Jio Platforms for staggering Rs 43, 574 Crores.

Through the deal Facebook is looking at leveraging the reach of the Indian Oil giant telecom assets and Whats App,s 40 Crores local users to connect small business and consumers in Asia's third largest economy.

The agreement will help RIL to pay off part of the company loan and debt and it is rendering to become debt free in coming months hopefully by the end of this year.

It enables Facebook owned WhatsApp and Jio Mart to create an e-commerce giant that can potentially rival Amazon and Walmart in India.

Following the deal Reliance Industries shares at the Indian bourses jumped 10 Percent to close at the high levels of 1370 levels which is highest in two months.

As previously also suggested by our Team one should buy Reliance at the levels of 1100 to 1150 but now it has touched the levels of 1370 , still one should by buyer in RIL for the target of 1800 by the year end.

ICICI Bank stares at loss of 50 Million Dollars

ICICI Bank discloses exposure to Singapore crude oil trading firm a Singapore based Hin Leon Trading which has resulted in ICICI Banks share plunging to low of 330 at Indian bourses on Tuesday 21st April 2020 which is around 8% of the previous days closing.

Singapore firm which of which 75 Million Dollars was secured through inventories of oil  - the oil prices futures plunged to negative levels in US commodity trading.

The bank may have to increase its provisioning immediately to counter M2M losses of the trading firm. Hence we may see subdued result of the Bank in the first quarter result of the present financial year.

We still recommend buy in the stock for the target of 375 - 391-415 in coming 2 to 3 month of time. kindly note that there will not be any kind of dividend declaration by any of the India bank listed on the stock exchanges be it be private bank or public sector banks.

Crude Oil Price falls to 10 $ - Should your buy MCX Crufe Futures ?

International Crude oil prices have plummeted with price in Unites States falling to - 40 $ read it again minus 40 $ per barrel, which means if you buy you will get at zero price and also get 40 USD on your purchase.

Similarly the prices in India's MCX - Multi Commodity Exchange have also fallen to the levels of 1,324/- INR per barrel of oil ( Kindly note that each barrel of oil is almost equivalent to 159 Liters )

.With present gloomy situation of global economy and Corona virus pandemic all across there is severe fall in the price of oil prices with problem of storage coming to shore due to lack of demand because of lockdown all across planet.

So being a smart investor and trader you are regularly reading our blog - what should be your decision to make money Buy or not ?

We suggest that one should buy the May Futures of MCX Crude presently trading at 1,324 INR per barrel buy now one lot at cmp and one more if rate falls down to 1300/- and sell around 1600 levels which is likely to come in a week or two time and prices may settle at around 1700 INR per barrel.

So our final verdict buy crude futures now at MCX and make handsome profit in a week or so as prices will not fall below the present levels as supply and production will be curtailed and some developing nations may start to buy at this dirt cheap price.

Bank of Russia hints at Big rate cut to boost economy

Bank of Russia governor Elvira Nabiullina hinted at a bigger than normal interest rate cut when the central bank meets next week.

Bank of Russia usually favours moves of 25 Basis points ( 100 Basis point = 1 % ) at one point of time, but at ties opts for 50 basis point change in the rates.

Due to Covid -19 fears there has been approximately USD 2 Billion dollars exit of funds from Russian economy ( Note that USD 2 Bill = 15, 000/- Crores Indian Rupees ).

Still analysts see and feel that its a good time to invest in the Russian economy and its stock market as there is lots of scope for its growth as compared to the developed economies of Americans or Western Europeans countries.

HDFC Bank Q4 Profit up 17% INR 6,927 Crores

India's Largest Bank by Market Capitalisation the bellwether HDFC Bank has reported better than expected result for the quarter ended March 2020.

Net Profit is up by 17% to the levels of Rs. 6,927/- Crores whereas for the complete year 2019 -2020 the total profit is at mind boggling 26,257/- Crores which itself is higher than 24% for the previous financial year 2019 which was 21,078 Crores.

The Bank informed that there will not be any divided decleration as per RBI directive due to Covid 19 pandemic situation.

The total deposit of the bank stands at 11.47 Lakh Crores where as the loans outstanding at 9.93 Lakh Crores.

The NPA declined to the levels of 1.26% from the previous year figure of 1.36%.

The result should be seen as an eye opener for the Public Sector Banks of our country which are running in losses and draining out the tax payers money. It should be noted that the Market Capitalisation of HDFC Banks stands much higher than that of all the Public sector banks market cap taken together.

The shares of HDFC Bank closed on Friday 17th April 2020 at Rs 910 up by 3% from the previous day close.

What should investors do now with HDFC Bank shares ?

Our team recommends a buy in the stock of HDFC Ban with the target of 1200 by June end and our year end targets stands at 1500/- The non decleration of dividend will result in price increase of the stock as after the removal of ban by Reserve Bank of India they should be giving very high divided in the year 2021 may be around Rs 50 per share according to our estimates.

Highest Cash Holding Mutual Funds April 2020

Mutual Funds as provided in their KIM ( Key Information Memorandum ) that they can hold cash upto certain level as a point of time and remain invested of the rest of the amount.

As in present scenario due to Covid 19 - Corona Pandemic the equity market have fallen around 30% from the recent high levels which gives a good opportunity for the funds which are in cash to go for investment in their choice of stocks and in case pressure for redemption is seen then they need not sell their stocks to pay those who are exiting the funds.

High cash holding can be a double edged sword as if market starts to rally relentlessly then these funds miss the bus of the rally and in turn ten to give subdued return that the aggressive funds.

We have given a list of top 15 Funds in percentage of their cash holdings with our investment rating and grade return, smart investor can look few of these funds to invest in and reap the benefit of fallen down equity markets.

Fund	As % of Assets	Fund Type	Our Investment Ratings (10)	Return Grade
ICICI Prudential Focused Equity	29	Multicap	6	Medium
SBI Contra	26	Multicap	7	Medium
Indiabulls Value	22	Multicap	8	High
HDFC Retirement Saving Equity	20	Multicap	5	Low
JM Large Cap	19	Tax Saver	8	High
Parag Parikh Tax Saver	19	Tax Saver	7	Medium
Axis Small Cap	18	Small Cap	7	High
Axis Multi Cap	17	Multicap	7	Medium
Axis Blue Chip	16	Large Cap	6	Medium
Axis Mid Cap	16	Mid Cap	7	High
ICICI Prudential Retirement	15	Multicap	5	Low
Indiabulls Tax Savings	14	Tax Saver	6	Medium
Tata Small Cap	13	Small Cap	7	Medium
HDFC Small Cap	13	Small Cap	5	Low
Shriram Long Term Equity	12	Tax Saver	5	Low

Kindly share your views / query in the comment section , we shall be happy to reply to your queries.

Best Company Fixed Deposit Rates ( FD Rates ) 2020

Following are the list of companies which are offering the Fixed Deposit scheme for the retail depositors.

Company	Interest Rate %	Senior Citizen Rate %	Tensure Months	Our Investment Rating ( 10 )
Hawkins Cookers	10.5	10.75	12 to 36	10
Shriram City Union Finance	8.65	8.9	12 to 60	9
Shriram Transport Finance	8.42	8.67	12 to 60	8
Mahindra Finance	7.7	7.9	15 to 40	6
ICICI Home Finance	7.55	7.8	12 to 120	6
Bajaj Finance	7.53	7.78	12 to 60	6
PNB Housing Finance	7.4	7.65	12 to 120	6
LIC Housing Finance	7.35	7.6	12 to 60	6
HUDCO	7.3	7.55	12 to 60	5
Sundaram Finance	7.21	7.71	12 to 36	5

Our Recommendations :

• For Hawkins Cookers invest for 12 to 24 months options which may give little less returns as given above but can be a safer option.
• For General Public / Young Persons go for Hawkins Cookers for 3 Years
• For Senior Citizen they can opt for Hawkins Cookers for 1 Year or Shriram City Union Finance for 3 Years
• Do not go for the options more than three as interest rate cycle reverses every 5 years hence in banks you may get higher FD rate after 36 to 45 months as compared to present rate.
• It is not advisable to go for the company FD giving lesser rate of interest in present scenario especially less than 8 %.

Government allows partial withdrawal for NPS Subscribers

The Pension Fund Regulatory and Development Authority of India ( PFRDA ) on Friday and National Pension System ( NPS ) subscribers will now be allowed partial withdrawal for covering expenses related to treatment of Covid-19.

In a circular addressed to all stakeholders and subscribers under the nPS PFRDA said. " In view of the decision fo teh Government of India which has declared Covid-19 as pandemic, it has been decided to declare Covid-19 as a critical illness which is life threatening in nature."

The partial withdrawal shall be permitted to fulfil financial needs of the subscribers, if rquired to him / her against the request placed for partial withdrawals towards treatment of the illness of subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents, as per the regulations , PFRDA said in the circular.

India has adequate stock of virus drug Hydroxychloroquine : Govt

The government on Friday said that there is enough stock of hydroxychloroquine in the country and it is taking all steps to ensure that there is not shortage of the drug in the domestic market. India is the biggest manufacturer of the anti - malarial drug that is being touted as "game changer" in teh fight against the Covid-19 pandemic. ( Source Mint )

Meanwhile government has asked the pharma companies to ram up the production of the hydroxychloroquine so that there is no shortage of the drug in the country as well as if demand comes from other countries facing he Coroan Pandemic.

The above news is very much positive for Indian Pharma companies especially IPCA Labs.

Hence one can buy IPCA Labs at CMP of 1,600/- for target of 2300 by December 2020.