Tagged with:
shriram transport finance corporation •
upper freezeSHRIRAM TRANSPORT FINANCE which opened at 732 or so on Friday and had a low of 725 or was hovering at that rate until 2.00 or so in the noon and there was a sudden spurt in volume and the stock closed at 769.20 up by almost 4.99 percent or 36.55 Rs.
The only news that came out is that “Shriram Transport Finance, small and medium commercial vehicles financer, is increasing fixed interest-rate loans and reducing the exposure to floating-rate loans as it sees interest rates moving up.”
Tagged with:
Bank •
CRR •
interest rate •
rbi •
repo rate •
reverse repo rate •
rrrThe Reserve Bank of India informed the market today that they have raised both Repo Rate and RRR, they have raised the key interest rates by more than expected and this is one of the main measure to control high inflation .
Repo Rate which is bank’s short term lending rate has been raised by 25 basis points to 5.75 percent and also it raised the reverse repo rate which is the Central bank that pays on bank deposits – by an unexpected 50 basis points, to 4.5 percent.Over here they expected only 25 basis points.They have left the cash reserve ratio unchanged at 6.0 percent, as expected.
Tagged with:
NCD •
shriram transport •
Shriram Transport Finance Company •
Shriram Transport Finance Company ncdShriram Transport Finance Company – They are the largest asset financing NBFC with a primary focus on financing pre-owned commercial vehicles*.They are among the leading financing institutions in the organized sector for the commercial vehicle industry in India for FTUs and SRTOs. They also provide financing for passenger commercial vehicles, multi-utility vehicles, three wheelers, tractors and construction equipment. In addition, They provide ancillary equipment and vehicle parts finance, such as loans for tyres and engine replacements, and provide working capital facility for FTUs and SRTOs. They also provide ancillary financial services targeted at commercial vehicle operators such as freight bill discounting and also market co-branded credit cards targeted at commercial vehicle operators in India, thereby providing comprehensive financing solutions to the road logistics industry in India. In addition, They also provide personal loans to the existing customers.
Shriram Transport Finance Company Limited NCD
NCDs aggregating upto Rs. 25,000 lacs with an option to retain over-subscription upto Rs. 25,000 lacs for issuance of additional NCDs aggregating to a total of upto Rs.50,000 lacs, including a reservation for Unsecured NCDs aggregating upto Rs. 20,000 lacs. The Unsecured NCDs will be in the nature of subordinated debt and will be eligible for Tier II capital.*NCD will be listed on NSE.
NCD Rating
The Secured NCDs proposed to be issued under this Issue have been rated ‘CARE AA+’ by CARE for an amount of upto Rs. 50,000 Lacs and ‘AA/Stable’ by CRISIL and the Unsecured NCDs proposed to be issued under this Issue have been rated ‘CARE AA’ by CARE for an amount of upto Rs. 50,000 Lacs and ‘AA/Stable’ by CRISIL for an amount of upto Rs. 50,000 Lacs
Issue Date
The Issue shall be open from May 17, 2010 to May 31, 2010 with an option to close earlier and/or extend upto a period as may be determined by our Board.
Pay-in date
3 (three) Business Days from the date of reciept of application or the date of realisation of the cheques/demand drafts, whichever is later.Deemed Date of Allotment Deemed date of allotment shall be the date of issue of the Allotment Advice / regret.
Options Available
| Options |
Frequency of |
Face Value & |
Coupon(%) p.a. |
Effective Yield (%) p.a. |
Minimum Application Size |
In Multiples Of |
| Interest Paymnet |
Issue Price |
QIB/NII |
>5lacs |
QIB/NII |
>5lacs |
| 1 |
ANNUAL |
Rs. 1000/- |
9.00% |
9.50% |
9.00% |
9.50% |
Rs.10000/- |
Rs.1000/- |
| 2 |
SEMI-ANNUAL |
Rs. 1000/- |
9.50% |
10.00% |
9.73% |
9.96% |
Rs.10000/- |
Rs.1000/- |
| 3 |
ANNUAL |
Rs. 1000/- |
9.75% |
10.25% |
9.75% |
9.75% |
Rs.10000/- |
Rs.1000/- |
| 4 |
DOUBLE BOND |
Rs. 1000/- |
N.A |
N.A |
N.A |
N.A |
Rs.10000/- |
Rs.1000/- |
| 5 |
ANNUAL |
Rs. 1000/- |
10.25% |
10.75% |
10.25% |
10.75% |
Rs.10000/- |
Rs.10000/- |
Final Conclusion :
Shriram Transport corporation is considered one of the best NBFc in india and they are in this field for almost 3 decades now so no worry about the business they are doing , Its trying to raise 80 percent of the money for the NCD from Retail.Scheme wise it has 3 secured and 2 unsecured , the secured NCD is rated as CARE AA+ and Un Secured are rated as CARE AA.If we go by the rating company the retailers need not worry much as the un secured itself is not having much risk.The interest yield is on the higher side where a bank offers only 7.5 or so max but they offer anywhere from 9.5 to 10.5 on the secured side itself.On the Un Secured side the yield is really high anywhere from 10.75 percent to 11.25 percent.If there is a urgent need of liquidity arise we can sell this NCD in NSE which is very good option for the retailers.So this NCD offers both very good Return and also rated good by Care and has very good liquidity option for the retailers.
Tagged with:
interest rate •
rbi •
repo rate •
reverse repoReserve Bank of India has raised the
>Reverse repo rate under the LAF by 25 basis points from 3.5 Percent to 3.75 Percent with immediate effect and also increased the
>Repo rate under the Liquidity Adjustment Facility (LAF) by 25 point from 5.0 Percent to 5.25 Percent with immediate effect.
>Cash reserve ratio (CRR) of scheduled banks by 25 basis points from 5.75 Percent to 6.0 Percent of their net demand and time liabilities (NDTL) effective the fortnight beginning 24 April 2010.
Tagged with:
economy •
Inflation •
interest rate Food Inflation data came oput today which was at staggering 17.70 percent compared to 16.35 percent.Reserve Bank of India (RBI) reviews its policy on April 20 not sure if they will wait till that rate for raising interest rates , we will see , but this is a sure sign of interest rates raising , already bank stock felt the ehat and it was stammered in todays market.
Tagged with:
CRR •
economy •
Inflation •
interest rate •
rbi •
repo •
repo rate RBI announced as part of efforts to control inflation worries that it has
>It has to raise the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 4.75 per cent to 5.0 per cent with immediate effect.
>And also to raise the reverse repo rate under the LAF by 25 basis points from 3.25 per cent to 3.5 per cent with immediate effect.
These measures will try to stop the raising inflation but not sure to what extent , As liquidity in the banking system will remain adequate, credit expansion for sustaining the recovery will not be affected.It will also monitor macroeconomic conditions, particularly the price situation, and it might tale further action if its required.
Tagged with:
food Inflation •
InflationFood inflation data was released today and the food inflation covers wholesale prices of lentils, rice, vegetables and other food articles has increased to 17.94 percent in the week to Jan. 30 from a year earlier , it was at 17.56 percent previous week.
Tagged with:
Bank •
CRR •
economy •
interest rate •
rbi •
Reserve Bank of IndiaCredit policy meeting outcome has come out and they have raised the CRR by 75 basis points , RBI has increased cash reserve ratio by 75 bps to 5.75 Percent , the hike would happen in two stages, the first stage of hike of 50 bps will be effective from February 13 and the next 25 bps from February 27. RBI has not touched the the reverse repo rate which is at 3.25 percent and repo rate which is at 4.75 percent.
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dcb •
home load •
interest rateDCB – Development Credit Bank which is a publicly listed private bank said that they are going to offer home loan rate below 8 percent , which is one of kind and think one of the lowest in the market but wait you knw how below 8 percent its just .05 percent down , anyway they are offering for 7.95 percent for the first year for loan amount upto 5 crore and after 1 year it will be back to floating interest rate that will be prevailing at that time.
Tagged with:
deposit •
deposit rates •
sbi •
state bank of indiastate bank of india revises deposit rates down by 25 basis points from october 5th 2009 on all its term deposits, this is for all domestic deposit rates below 1 crore.
Tagged with:
CRR •
crr rate •
interest rate •
rbi •
repo rateReserve Bank of India informed today that Central Bank after the Policy review today have kept all the 3 Key interest rates unchanged .
Reserve Bank of India (RBI) which took several mesaure starting almost from october 2008 have lowered all the Key Inetrest rates.
>Repo rate, or its key short-term lending rate, was cut by 4.25 Percent to 4.75 Percent.
>Reverse-repo rate was cut by 2.75 Percent since early December 2008 >Cash reserve requirement (CRR) (the proportion of deposits that banks set aside), was cut by 4 percent to 5 Percent .
Tagged with:
bplr •
interest rate •
sbi •
state bank of indiaState Bank of India yeaterday announced that it will be cutting benchmark prime lending rate by 50 basis points to 11.75 per cent with effect from June 29.This is the second bank after Union bank of india , and im sure more banks will follow this .They did cut deposit rate by 25 basis point on june 15th 2009 .
Tagged with:
lending rate •
plr •
union bank Union Bank of India informed the market yesterday that they have announced a 25-basis-point reduction in PLR to 11.75 per cent, and that will be effective from July 1st 2009 , think Union Bank of india is the first to do it after a long time and this is infact the first bank to do it after the Finance Minister’s meeting with PSU bank chiefs on June 10 2009 .
Tagged with:
repo rate •
Reserve Bank of India •
reverse repo rateReserve Bank of India (RBI) informed yesterday that it has , cut its key short-term rates by 25 basis points each on Tuesday, 21 April 2009, to prop up growth amid global economic slowdown.
The repo rate, at which the RBI lends to the banks, was cut to 4.75%, and the reverse repo rate, at which the RBI absorbs excess cash from banks, was reduced to 3.25%.
Tagged with:
interest rate •
rate cut •
repo rate •
reverse repoRBI announced after the market closed yesterday that it will go ahead and cut repo rate, reverse repo rate by 50 basis points each with immediate effect.After the cut the Repo Rate stands at 5 percent and the reverse Repo Rate stand at 3.5 percent.The GDP figure which came out well below expectation had made them to reduce the rate.
Tagged with:
bank loan •
interest rate •
mortgage rate •
sbiSBI informed the market yesterday that it has reduced the home loan rate at 8 percent compared to what it is now , the catch is its only for the first 1 year from the date of approval after that it will change to normal rate whatever it is at that time .This scheme again is not all the time if you have the loan bought between February 2 and April 30, 2009 then you can avail this offer.
Tagged with:
bull run •
dow jones •
World MarketThe Dow Jones industrial average (INDU) gained 200 points, or 2.5%. The Standard & Poor’s 500 (SPX) index added 28 points or 3.4% and the Nasdaq composite (COMP) added 53 points or 3.6%.This means for three straight session Dow Jones has gained points , we have to be care full.The gains all stayed intact when the Federal Reserve kept a key short-term interest rate at all-time lows and also promised that it was willing to do whatever it takes to have the credit flowing .I’m not sure how many times they will help the company and bank by bailout and other plans , Right and left the layoff is happening not sure how much these money will save everyone.
What moved the market
>Word surfaces that government-backed “bad bank” plan may be in making; financials come into focus
>Wells Fargo maintains dividend, has no plans to request additional TARP funds
>Yahoo! bests earnings expectations
Tagged with:
Inflation •
interest rateReserve Bank of india keeps all the key rates unchanged and also they reduced the overall GDP groth to 7 percent from 7.5 to 8 percent and have targeted the inflation percent at 3 percent by the end of march 2009.
Tagged with:
CRR •
interest rate •
rate cut •
repo rate •
reserve repo rateIn order to cope up with the Global recession all the country are doing this almost every month and India which was not really into recession is trying to take all the measure to kepp away from it , But its kind of deeper that expected , Out of the various cuts that Reserve bannk of india has did this is the latest
Repor Rate cut
To reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reserve Repo Rate
To reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Cash Reserve Ratio – CRR Rate
To reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
The CRR cut is not immdiate but atleast its happening this si the only gfactor that will put some money in banks hand which in turn can be used by banks for various purpose , So this cut will release 20,000 crore.We can expect more rate cuts in lending loansfrom various banks.
Tagged with:
bplr •
loan rate •
rate cut •
sbi •
state bank of indiaState bank of india announced over weekend that they have cut the BPLR by .75 percent , This means that the BPLR which governs the Home loan lending rate is also cut and now it stands at
Loan Rates
>9 per cent for loans up to Rs 30 lakh for a period of five years.
>For loans that are between period of 5 to 15 years the revised interest rate is 9.25 per cent.
>For Loan above 15 and below 25 years rate will be 9.5 per cent.
This will come into effect from January 1.
Tagged with:
Adjustable-rate mortgage •
Federal funds rate •
Federal Reserve System •
Financial services •
rate cut •
United StatesFed which doesnt want to have the rate to be at 0 said today that it will cut the rate in the range of 0 to .25 percent which is the first time they have come to this range ever .This is like 10th time they are cutting the rate in 15 months.This federal funds rate is overnight lending rate which is used as a benchmark to set rates for a variety of loans, including adjustable rate mortgages, credit cards, home equity lines of credit and business loans. So after this move we can see lot of banks lowering the interest rate for the above said instruments.
Tagged with:
Bank •
Banking Services •
Banks and Institutions •
Financial services •
home loan •
icici bank •
interest rate •
repo rateSo After RBI news on cut in Lending rate to banks i ment the Repo Rate , Banks came out with news on lending rate cut , Im not sure if ICIC bank has done any Cuts before this but now thay have announced that ICICI Bank has cut interest rates on new home loan below Rs 20 lakh by 1.5% to 11.5%.
Tagged with:
Banking Services •
Central bank •
Financial services •
repo rate •
Reserve Bank of India •
reverse repoReserve Bank of India Cuts Repo Rate and Reverse Repo Rate , RBI cuts repo rate by 100 basis points to 6.5 percent and cuts reverse repo rate by 100 basis points to 5 percent and there is no change this time to CRR, SLR. The rate cut to Repo and Reverse Repo Rate will come into effect from December 8.
What is Repo Rate ?
Repo rate is the rate at which the banks can borrow money from a central bank of the country in order to avoid scarcity of funds.For eg, whenever the banks have any shortage of funds they can borrow it from Reserve Bank of India (RBI).
So RBI is sending signals to Banks to have the lending rate to public cut down .We will soon see a lot of banks announcing more lending rate cut .
Tagged with:
bplr •
lending rate •
Punjab National Bank •
rate cutPunjab National Bank which is the one normally cuts the rate when RBI cuts the crr or lending percentage has even done it again ,Think PNB would be the one who would be lending it for the lowest now.They have decided to reduce the BPLR by 100 bps from 13.50% p.a. to 12.50% with effect from December 01, 2008.They have also cut down the deposit interest rate from 10.50 percent p.a. to 9.50 percent p.a. for deposits of 1 year to less than 3 years.
Tagged with:
canara bank •
Financial services •
housing loan •
Interest •
MortgageCanara Bank has informed the market after it reduces the BPLR it has also reduces the Housing loans by 75 basis points sanctioned on or after November 10. For tenures of up to five years, the rate will now be 9.50 per cent for loans up to Rs. 30 lakh and 10.25 per cent for loans above Rs. 30 lakh. This floating rate.
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