Tenor Financial News

As per the RBI statement: It is proposed to put in place a transparent framework for reset of interest rates on floating interest loans. The framework will require Regulated Entities to (i) clearly communicate with borrowers for resetting the tenor and/or EMI; (ii) provide options for switching to fixed rate loans or foreclosure of loans; (iii) disclose various charges incidental to the exercise of the options; and (iv) ensure proper communication of key information to borrowers.

The news of Goswami Infratech Pvt. Ltd— a Shapoorji Pallonji (SP) Group company— raising debt last month raised quite a few eyebrows. That was because the company tapped the bond market to raise a massive ₹14,300 crore at a whopping 18.75% interest.

Clarity of expression by central banks is fairly new. It was the Great Recession of 2008-09 that made them give up ‘constructive ambiguity,’ which routinely got heads scratched over what had been said (or hinted at), in favour of corporate-style ‘forward guidance’ on economic conditions and their policy path. A struggle against stubborn inflation, however, has seen the return of relative reticence, especially after financial markets got rattled by hawkish talk by top bank chiefs.

Data centre business AirTrunk and its big-bank syndicate are poised to rule off the whopper $4.76 billion sustainability-linked loan launched in mid-June.

Banks including SBI, IDBI Bank, Indian Bank have special fixed deposit with deadlines. Banks such as Bank of India, Canara bank and HDFC Bank has introduced new tenures with higher interest rates.Bank of India The bank has introduced a new fixed deposit tenure of 400 days (Monsoon Deposit) with the highest interest rate, according to the Bank of India website. Following the revision, the bank offers a rate of interest in the range of 3 per cent to 7.25 per cent to general customers for deposits maturing between 7 days and 10 years. The bank has introduced new tenure of 400 days, which offers highest interest rate of 7.25%.

The equated monthly instalments (EMIs) which have already increased significantly last May, will go up further as the banks have started hiking lending rates. Many borrowers are likely to feel the pinch of such an increase in EMIs. 

The Marginal Cost of Funds Based Lending Rate (MCLR) is the minimum lending rate below which a bank may not lend.Here is a look at the latest MCLRs of ICICI Bank, PNB and Bank of India.ICICI Bank ICICI Bank has hiked MCLR by 5 basis points (bps) across all tenures. According to the ICICI Bank website, the overnight, one-month MCLR rate hiked to 8.40 percent from 8.35 percent. The three-months, six months MCLRs at ICICI Bank hiked to 8.45 percent, and 8.80 percent, respectively. The one-year MCLR is revised to 8.90 percent from 8.85 percent.

Interest rates on RDs are comparable to those on fixed deposits, but what sets RDs apart is the flexibility of monthly installments. A recurring deposit account allows you to invest a specific amount each month until the end of the tenure, unlike a typical fixed deposit, which requires a single sum investment at one time. You have the advantage of receiving a better rate of return on your consistent monthly deposits when you invest in recurring deposits (compounded quarterly). A recurring deposit plan gives you the option to accumulate savings through regular monthly deposits of a certain amount throughout time and have enough money to accomplish specific financial objectives. The interest earned on a bank recurring deposit is taxable. Here are top banks offering best RD interest rates to general citizens.SBI RD interest ratesSBI offers recurring deposit interest rates ranging from 6.80% to 7% for terms ranging from one year to ten years. The minimum monthly deposit is Rs. 100 (followed by multiples of Rs. 10). SBI charges a penalty for late payment of instalments. If six consecutive instalments are not received, the account will be closed prematurely and the amount paid to the account holder.

Along with this, the bank has reduced FD interest rate by 100 bps (1%) on 1 year tenure from 7% to 6%. Following the revision, the bank offers a rate of interest in the range of 3 per cent to 7.5 per cent to general customers for deposits maturing between 7 days and 10 years.

Axis Bank has revised the fixed deposit interest rates for amounts below ₹2 crore. The new FD rate is effective from today, 26 July 2023, according to the Axis Bank website. The bank has slashed the rate on one tenure by 10 basis points (bps).

HDFC with HDFC Bank is hurting the short term fixed income investors. Fresh sale of commercial papers fell to a new nine year low. The latest Reserve Bank data indicates that in the July 15 fortnight it fell to Rs 26,000 crore as one of the biggest issuers-HDFC is now out of the market.

₹100 per month, and do so over a horizon that aligns with your goals. However, for your investments to be fruitful, you must ensure the amount you accumulate meets your financial objectives.  You can do this by optimising your investments with the help of an SIP calculator.

As gilt funds have started looking attractive, investors are gradually betting on them for higher long-term returns. In the six months to June this year, these funds have reported net inflows of Rs 5,530 crore as compared with net outflows of Rs 1,254 crore during the same period last year.

Anil Agarwal's Vedanta Resources (VRL) rolled over the $449 million (₹3,689 crore) debt repayment to a group company at more than double the interest payable to the original loan. The loan from Vedanta Limited's (VDL) subsidiary Cairn India Holdings (CIHL) would now have repayment on December 31, 2024, with an interest of 17%, up from 7%, a move that would help repay outsiders ahead of group companies. VDL's subsidiary, CIHL, had lent $956 million to Twin Star Holding, a related party, in FY21 at 7%. As of April 1 this year, the outstanding loan balance was $449 million and had to be repaid by December. This has been extended to December 31, 2024, with interest payable half-yearly. The management had clarified in 2020 that no inter-company loans from VDL to VRL would be used to meet debt obligations after a few VDL equity investors including UK-based hedge fund Kyma Capital raised concerns over the use of Cairn International to borrow $956 million at 7% during a delisting attempt.

Samvardhana Motherson International (SAMIL), formerly Motherson Sumi, is looking to raise funds by issuing overseas bonds after five years. The company is gauging investor interest as it aims to garner more than $500 million equivalent through euro or dollar or yuan -denominated bond sales for growth and capital expenditure. The company roped in HSBC to reach out to investors in a non-deal roadshow earlier this week and it may consider issuing overseas bonds in the second half of the financial year, two sources said.