Private banks to levy up to Rs 150 for cash transactions

Top-three-Private-sector-banks-in-IndiaMajor private banks have begun reintroducing transaction charges for cash deposits and withdrawals at their branches in a move that is being seen as one aimed at discouraging cash transactions and furthering the Prime Minister Narendra Modi and his government’s digital payments drive.

Banks including HDFC Bank   , ICICI Bank   and Axis Bank    on Wednesday began charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

ATM intercharge charges have also been re-introduced.

The charges would apply to savings as well as salary accounts effective from Wednesday, leading private sector player HDFC Bank said in a circular.

The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn effective on Wednesday, the circular added.

The move was seen in some quarters as aimed at discouraging cash transactions and furthering the digital payment drive.

In his Budget speech last month, Finance Minister Arun Jaitley had imposed a cap on cash transactions above Rs 3 lakh, taking forward the agenda to move towards a cashless economy.

For the basic no-frills accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.

In case of ICICI Bank, the charges are same as they were before the demonetisation move announced on November 8, while there is an increase in such fees in case of some others.

According to details on ICICI Bank website, there will be no charge for first four transactions a month in home branch while Rs 5 per thousand rupees would be charged thereafter subject to a minimum of Rs 150 in the same month.

The third party limit would be Rs 50,000 per day.

For non-home branches, ICICI Bank would not charge anything for first cash withdrawal of a calendar month and Rs 5 per thousand rupees thereafter subject to a minimum of Rs 150.

For anywhere cash deposit, ICICI Bank would charge Rs 5 per thousand rupees (subject to a minimum of 150) at branches, while deposit at Cash Acceptance Machine would be free of charge for first cash deposit of a calendar month and Rs 5 per thousand thereafter.

At Axis Bank, the first five transactions or Rs 10 lakhs of cash deposits or withdrawals would be free and charged at Rs 5 per thousand rupees or Rs 150, whichever is higher.

It could not be ascertained whether the public sector banks have also begun imposing such charges.

When contacted, a senior official said there has been no directive from the government to the banks regarding levy of such charges.

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Weak Rupee Drags Market, Traders Cautious Ahead of F&O Expiry

bear_nse_bse_sensex_down_chart_board_graph_red-traders_markets_sensex2:44 pm Interview: Biotech entrepreneur Kiran Mazumdar-Shaw has said the demonetization of high-value currency notes is an opportunity to leapfrog into a digital cashless economy, even as she called for a effective monitoring to prevent accumulation of fresh black money.

The CMD of Biocon Ltd, which was rated among the world’s top ten employers in the biotechnology industry by an international magazine recently, said she is confident that the demonetized currency would be replaced by the new notes reasonably soon

“The objectives of flushing out counterfeit currency, illicit funding of businesses and illicit activities including extremism and terrorism and ‘havala’ transactions will certainly be achieved,” Mazumdar-Shaw told PTI.

Demonetization would also serve to be a deterrent to corruption in the short-term. “However, what remains to be seen is for how long can we stave off the re-emergence of black money,” she said.

2:30 pm Demonetization risks: Economic risks faced by banks in India have increased amid deteriorating credit profile of corporate, while demonetization could hurt lenders’ asset quality in the short-term, S&P Global Ratings said today.

It said while the demonetization of 500 and 1,000 rupee notes would be positive in long-term, it will have a transitory impact on growth in the short-term and could hurt banks’ asset quality.

“Bank deposits would benefit due to demonetization, though not all inflows will remain in the banking system on a permanent basis,” S&P said in a report titled ‘Banking Industry Country Risk Assessment: India’.

“The economic risks facing financial institutions in India have increased amid structural and cyclical challenges that Indian companies face,” it added.

Economic risks faced by banks in India have increased amid deteriorating credit profile of corporate, while demonetization could hurt lenders’ asset quality in the short-term, S&P Global Ratings said today.

It said while the demonetization of 500 and 1,000 rupee notes would be positive in long-term, it will have a transitory impact on growth in the short-term and could hurt banks’ asset quality.

Bank deposits would benefit due to demonetization, though not all inflows will remain in the banking system on a permanent basis,” S&P said in a report titled ‘Banking Industry Country Risk Assessment: India’.

“The economic risks facing financial institutions in India have increased amid structural and cyclical challenges that Indian companies face,” it added.

Weak Indian currency is dragging the market but the Nifty is defending crucial 7950. Traders are also cautious ahead of November Futures and Options (F&O) expiry. The Sensex is down 160.84 points or 0.6 percent at 25890.97, and the Nifty down 53.35 points or 0.7 percent at 7979.95. About 1141 shares have advanced, 1246 shares declined, and 171 shares are unchanged.

TCS , Infosys, Bajaj Auto, Wipro and SBI are gainers while Tata Motors, NTPC, ICICI Bank, Axis Bank and GAIL are losers.

As weak rupee spreads panic on street, Khoon Goh of ANZ Research said rupee may depreciate another 2-4 percent. However, he does not expect it to weaken much further because the RBI has plenty of forex reserves.

NS Venkatesh, ED, Lakshmi Vilas Bank said the fundamentals of rupee are still intact and as equity market stabilises, rupee too will follow suit.

Bhaskar Panda of HDFC Bank does not see the rupee going past 69.25 to the dollar anytime soon because according to him the slide is overdone. He also does not expect the dollar index to rise further than 104 because it could impact American exports and jeopardise their Make in America programme.

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HDFC Bank Q2 PAT jumps 20% YoY at Rs 3,455 crore

hdfc-bank-q2-patHDFC Bank Ltd has announced the Unaudited Standalone results for the quarter ended September 30, 2016.

The Bank has posted a net profit of Rs. 3455 crore for the quarter ended September 30, 2016 as compared to Rs. 2869 crore for the quarter ended September 30, 2015.

Total Income has increased from Rs. 17324.3 crore for the quarter ended September 30, 2015 to Rs. 19970.9 crore for the quarter ended September 30, 2016.

Stock Commentary:
HDFC Bank Ltd is currently trading at Rs 1256.75, down by Rs 8.65 or 0.68% from its previous closing of Rs 1265.4 on the BSE.

The scrip opened at Rs 1265.5 and has touched a high and low of Rs 1265.5 and Rs 1244.75 respectively. So far 783749(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 322124.49 crore.

The BSE group ‘A’ stock of face value Rs 2 has touched a 52 week high of Rs 1318.2 on 23-Sep-2016 and a 52 week low of Rs 928.8 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs 1275.95 and Rs 1240.15 respectively.

The promoters holding in the company stood at 21.34 % while Institutions and Non-Institutions held 43.82 % and 16.26 % respectively.

The stock is currently trading below its 50 DMA.

HDFC Bank Ltd
BSE 1,257.00 [8.40] ([0.66]%)
NSE 1,253.00 [10.55] ([0.83]%)
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