Tenor Financial News

Post Office Time Deposit vs Bank Fixed Deposit: While several banks are offering more than 9 percent interest rate on fixed deposits to senior citizens, Post Office Time Deposit is still a safer option when it comes to guaranteed returns. Read on to know why.

tax benefits. All the top lenders including the State Bank of India (SBI), ICICI Bank, HDFC Bank, and others give 50 basis points of interest to senior citizens over and above the general customers. Like, top lenders, Small Finance Banks (SFBs) also offer higher interest rates on FDs to senior citizens.

The largest union at Navy shipbuilder Bath Iron Works, located in Maine, has approved a three-year contract, averting another strike like the one three years ago

Regulated Entities (REs) /banks cannot increase the tenor of EMI-based loans without giving borrowers a choice of either increasing the EMI amount or elongation of the loan tenor, according to a notification issued by the RBI. The notification will apply to all equated instalment-based loans of different periodicities.

Furthermore, under the new guidelines, loan sanction letters will need to mention the costs associated with transitioning from a floating to a fixed interest rate in the future. Lenders will be required to ensure that even in the event of significant rate hikes, the EMIs will continue to cover the monthly interest payments, preventing any increase in the outstanding loan balance from the previous month after the EMI is paid. The RBI's circular on resetting floating interest rates for EMI-based personal loans said that lenders should not solely assess repayment capacity based on prevailing interest rates but they should factor in a cushion to ensure borrowers can meet their payment obligations even if interest rates climb.In the past, interest rates have experienced fluctuations of up to six percentage points within a single loan cycle, which means the interest burden had sharply increased and typically the loan tenure rose by years. Lenders have sometimes refrained from adjusting EMIs, as extending the EMI duration would result in higher interest earnings.

MUMBAI : Borrowers will soon get to choose whether to pay higher equated monthly instalments (EMIs) or repay their loan over a longer period when banks raise interest rates. They can also expect greater transparency from lenders on penalties if they miss out on repayments. In the first of two circulars issued on Friday, the Reserve Bank of India (RBI) said banks and non-banks should provide individual borrowers with the option to switch to a fixed rate at the time of resetting interest rates.

RBI) has asked the banks to be transparent in resetting the interest rate and EMIs of floating rate home loans under the external benchmark based lending rate (EBLR) mechanism. In terms of extant instructions of Reserve Bank of India, regulated entities (REs) have the freedom to offer all categories of advances either on fixed or on floating interest rates basis, the central bank said.

rates staying higher for longer as long-term bond yields surged. MSCI's broadest index of Asia-Pacific shares outside Japan were up 0.1% after hitting a nine-month low the session before. It was, however, headed for a weekly loss of 2.8%, the third straight week of declines.

Davidson Kemper, Ares SSG, and Varde Partners. Going beyond consortium loans with a fixed coupon and tenor, advisors are cobbling together lenders to fund borrowers at different rates and with different tenors to create more grades in the seniority of claimants in repayment schedule.

The State Bank of India (SBI) has once again extended the last date for investing in its special Amrit Kalash fixed deposits. The scheme provides the highest interest rate offered by SBI to senior and general citizens across all tenors.

In his Independence Day Speech 2023, Prime Minister Narendra Modi said the Government will provide cheaper home loans to those living in rented houses in cities through a new scheme.

Banks have been hiking lending rates. The public sector lender Canara Bank has hiked home loan rates and other loan rates with effect from 12 August.  In August, top banks in India, including HDFC Bank, ICICI Bank, Bank of Baroda, and Bank of India increased their marginal cost of funds-based lending rate(MCLR). 

World Economic Forum warned that the global rise in public debt was a ‘fiscal ticking bomb’. The sudden increase in indebtedness was driven by two developments. First, governments around the world unleashed fiscal stimuli to support their economies during the pandemic.

HDFC Bank, and ICICI Bank, Bank of Baroda increased their marginal cost of funds-based lending rate (MCLR) across various tenors.Bank of Baroda The Bank of Baroda (BoB) raised its benchmark lending rates by 5 basis points (bps) for all tenures. Starting on August 12, 2023, the new rates will be in effect. This action was taken barely one day after the RBI indicated that the repo rate would remain unchanged. After the increase, the new MCLR rates for tenures of one year and overnight are 8% and 8.70%, respectively. For other tenures, the MCLR loan rate has remained constant.HDFC Bank HDFC Bank has increased the benchmark marginal cost of funds-based lending rates (MCLR) by up to 15 basis points on select tenures. The new rates are effective from August 7, 2023, according to the HDFC Bank website.

Amrit Mahotsav with higher interest rates compared to standard FDs. Some of these special bank FDs ended and few will end on August 15, 2023.State Bank of India and IDBI Bank’s special fixed deposits dubbed Amrit Kalash and Amrit Mahotsav FD, respectively, will end on August 15, 2023.SBI Amrit Kalash The bank offers «AMRIT KALASH» retail term deposit scheme at a rate of 7.10% pa for regular citizen. The tenure of the deposit is 400 days.

The recent decision of the Reserve Bank of India to keep the repo rate unchanged has allowed more time for senior citizens and other bank customers to book fixed deposits at higher rates. At present, several banks are providing over 9% interest on FD to senior citizens as well as general customers (see below).

RBI) also uses a package of explicit and implicit incentives to persuade economic agents to act in a certain fashion so that the central bank can meet its price, economic growth and financial stability mandates. Unfortunately, the incentives embedded in the current version of monetary policy as well as in the banking regulatory framework seem to be sending out mixed signals.

Reserve Bank of India (RBI) will issue guidelines to banks and housing finance companies (HFCs) on resetting the tenor and/or equated monthly instalments (EMIs) after it found “several instances of unreasonable elongation” of floating rate tenor by lenders without proper consent or communication to borrowers. Governor Shaktikanta Das said lenders will have to also take into consideration age and payment capacity before changing loan terms. “It is necessary to avoid an undue long elongation which sometimes may camouflage an underlying stress in a particular loan.

RBI) Thursday asked banks to double down efforts to maximise recovery from written-off accounts. This was after data released to Parliament showed that banks have written off bad loans worth Rs 14.56 lakh crore in the last nine financial years, starting 2014-15. “We would like the bank managements to have a board-approved policy for write-off and also a follow-up to maximise recovery from these accounts for which we are engaging with bank managements,” deputy governor Swaminathan J said. Data tabled in the Lok Sabha had also shown that banks wrote off bad loans worth over Rs 2.09 lakh crore during the year ended March 2023. In fact, banks had recovered an aggregate of Rs 2.04 lakh crore in written-off loans, including corporate loans, since April 2014 and up to March 2023. The deputy governor said that it was important to get the context right when assessing written-off loans. “We have to be guarded before passing judgments over that,” he said. “Once an account becomes NPA, prudential norms require the creation of provisions and basis the ageing of the NPA as well as the realisable value of the security these provisions get augmented and come to a stage when provisions equal the outstanding in the account. Once these accounts become fully provided for you are carrying an asset on one side and equal provision on the other side.” Swaminathan explained that as part of prudent balance sheet management and tax efficiency banks resort to technical write-offs.

MUMBAI : The Reserve Bank of India (RBI) on Thursday said it would set rules to enhance transparency in interest rate and tenor resets for floating loans, an outcome of home-loan repayment periods being extended to as long as 50 years in certain cases. After RBI started raising the repo rate in May last year, home-loan borrowers, most of whose loans are pegged to external benchmarks like the repo rate, had to substantially increase their monthly repayments or extend their repayment tenor or a combination of both. As Mint reported in March, these extended loan tenors resulted in certain borrowers being obligated to make payments well into their 70s and 80s.

Bankers said the Reserve Bank's move to impose a 10 per cent incremental cash reserve ratio will not impede banks' ability to lend while the status quo on policy rates was on expected lines. The Reserve Bank opted for the status quo in key policy rates for the third consecutive time on Thursday.