Tag: HDFC Ltd

  • HDFC merger: tax implications for shareholders

    The document date for the merger of HDFC Ltd with HDFC Bank was 13 July. The document date is the deadline set by an organization to find out the eligibility of shareholders to obtain dividends and distributions. As per the share trade ratio of the merger, for each 25 shares of HDFC, 42 shares of HDFC Bank have been issued to the previous’s shareholders. If we break this all the way down to per share stage, one can say that the ratio is 1.68 shares of HDFC Bank for each 1 share of HDFC.

    Shares are thought of capital property underneath earnings tax (IT) regulation, and any achieve on their sale is handled as capital features. However, within the case of a merger, the IT regulation doesn’t take into account the swap of shares as a switch, making certain that it’s tax-neutral for shareholders. To qualify for this tax-neutral profit, the merger should meet sure standards. First, all property and liabilities of the amalgamating firm have to be transferred to the amalgamated firm. Second, a minimal of 75% of shareholders (in worth) of the amalgamating firm should change into shareholders of the amalgamated firm. The case of HDFC Bank qualifies for each of those situations.

    Capital features on sale of shares is calculated on the idea of the holding interval and the date of acquisition of shares. If somebody receives shares as a part of a merger, the holding interval is counted from the date of buy of the amalgamating firm’s shares (HDFC Ltd on this case).

    Let’s perceive this with an instance. Suppose you got 30 shares of HDFC Ltd on 1 April 2019 at ₹2,000 per share, thus spending ₹60,000. As per the share trade ratio upon merger, you’re entitled to obtain 50.4 (42/25*30) shares of HDFC Bank. But since there isn’t any idea of fractional shares in India, you may be issued 50 shares of HDFC Bank. Further, as per the Bank’s BSE announcement of 14 July, the share allotment train has been finished and the itemizing of those shares is underneath course of.

    Now, let’s assume these 50 shares of HDFC Bank are listed on the exchanges on 17 July at ₹1,700 per share. Further, assume you promote these 50 shares on 1 August for ₹1,800 per share which makes the entire gross sales consideration to be ₹90,000. This sale transaction can be topic to capital features tax.

    In the case of listed firms, fairness shares held for greater than 12 months are categorised as long-term capital property, whereas these held for a shorter interval are categorised as short-term capital property. In the above instance, the holding interval is from 1 April 2019 to 1 August, making the features long-term capital features.

    The value of buy of shares of HDFC Ltd can be taken to be the price of buy of shares of the HDFC Bank (amalgamated firm). In this instance, the price of buy of fifty shares of HDFC Bank obtained on merger shall be ₹59,524 ( ₹60,000/50.4*50). This adjustment to the price of buy is completed as in opposition to the unique value of HDFC Ltd share entitlement of fifty.4 shares. Accordingly, there can be a long-term capital achieve of ₹30,476 ( ₹90,000- ₹59,524). One essential factor to notice right here is that the good thing about grandfathering may also be obtainable in circumstances the place shares of the amalgamating firm have been bought on or earlier than 31 January 2018.

    As for the 0.4 fractional entitlement, because it is not going to be given as a share, the shareholder can be paid consideration in money or type. This can be taxed as capital features because the shareholder has not obtained shares in lieu of shares and so, not like the swap of shares on a merger, no tax profit is given right here. In our instance, your fractional entitlement was 0.4 shares. Let’s assume that on the day you’re paid for the fractional entitlement, the worth of 1 share of HDFC Bank was ₹1,820. The capital achieve on the fractional entitlement would be the worth of 0.4 shares, i.e. ₹728 ( ₹1,820*0.4) as diminished by the price of buy, i.e. ₹476 ( ₹60,000/50.4*0.4) which comes out to be ₹252. Rules of the holding interval to categorise it as long-term or short-term will apply as talked about above.

    Sambhav Daga is companion at Sunil Johri & Associates

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 16 Jul 2023, 10:26 PM IST

    Topics

  • This particular FD from HDFC is expiring quickly with rates of interest as much as 7.50%

    HDFC Ltd one in every of India’s main housing finance firms launched a particular mounted deposit referred to as “Sapphire Deposits” which is in drive from 14th October 2022. The firm has launched a one-of-a-kind mounted deposit with a tenor of 45 months to commemorate its forty fifth anniversary. Interest charges might be utilized on deposits as much as ₹2 Cr underneath this limited-time scheme, which is accessible to each people and trusts. The scheme is legitimate until thirty first October 2022 and buyers can generate returns as much as 7.50% which might be an inflation-beating return for them.

    HDFC Sapphire Deposit

    In addition to month-to-month earnings plans, HDFC’s “Sapphire Deposits” additionally present quarterly, half-yearly, annual, and cumulative choices. The rate of interest for the Monthly Income Plan is 7.25%, and the minimal deposit allowed is ₹40,000. The rate of interest for the quarterly choice is 7.30%, and the minimal deposit quantity is ₹20,000. The rate of interest for the half-yearly choice is 7.35%, and the minimal deposit quantity is ₹20,000. The rate of interest for the Annual Income Plan is 7.50%, and the minimal deposit quantity is ₹20,000. Under the cumulative choice, HDFC is providing an rate of interest of seven.50% and the minimal deposit quantity required is ₹20,000.

    On the common deposits, HDFC is at the moment providing an rate of interest starting from 6.15% to six.85% underneath the month-to-month earnings plan, 6.20% to six.90% underneath the quarterly choice, 6.25% to six.95% underneath the half-yearly choice, 6.65% to 7.05% underneath the annual earnings plan and 6.35% to 7.05% underneath the cumulative choice of deposits maturing in 12 to 120 months. These rates of interest are efficient as of September 30, 2022.

    View Full Image

    HDFC Sapphire Deposit (hdfc.com)

    For 28 straight years, CRISIL and ICRA, two of the highest credit standing companies, have given HDFC’s deposits programme AAA scores. The 420 interconnected places of work that HDFC has scattered round India serve its depositors, and 77 deposit centres give prompt companies. The firm affords quite a lot of digital cost choices, together with prompt loans in opposition to deposits and the choice to pay curiosity. Being an trade chief for greater than 35 years and HDFC has gained the belief of greater than 6 lac depositors.

    Resident Indian residents have entry to quite a lot of deposit choices with maturities starting from 12 to 120 months, engaging rates of interest, and a number of curiosity cost choices at HDFC. All deposit choices are given with an extra 0.25% p.a. to older adults 60 years of age or older.

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

  • This AAA-rated NBFC revises rates of interest on mounted deposits: Check particulars

    Leading Indian monetary providers supplier HDFC Ltd. is a Non-Banking Financial Company (NBFC). For 27 years working, two of the highest credit standing businesses (CRISIL and ICRA) have given HDFC’s deposits scheme AAA rankings. Along with providing wonderful and assured returns on deposits, the very best credit score grade displays credit score high quality and deposit security. The firm immediately on twenty seventh June has revised its rates of interest on mounted deposits of lower than ₹2 Cr and now provides a most rate of interest of seven.05% on common or fundamental mounted deposits and as much as 6.95% on its Green Deposit product.

    HDFC Green Fixed Deposits

    Green & Sustainable Deposits, a product from HDFC that promotes the Sustainable Development Goals (SDGs) of the United Nations, was just lately introduced. This deposit product strengthens the corporate’s cooperation in initiatives that actively endorse the SDGs of the UN, and traders might have a useful environmental impact by making deposits beneath the HDFC Green Deposit programme. Under Green Deposits, traders could make three forms of deposits named Special, Premium and Regular deposits. On particular deposits of lower than ₹2 Cr, HDFC now provides a most rate of interest of 6.95% and on premium deposits of under ₹2 Cr, the corporate now provides a most rate of interest good thing about 6.75%. Whereas on common deposits, the corporate provides a most rate of interest good thing about 6.80%.

    View Full Image

    HDFC FD Rates (hdfc.com) HDFC Ltd Basic Fixed Deposits

    The firm accepts three comparable forms of deposits for this sediment product. The rate of interest on mounted deposits beneath ₹2 Cr has been revised by HDFC immediately. The firm accepts three comparable forms of deposits for this sediment product. The rate of interest on mounted deposits beneath ₹2 Cr has been revised by HDFC immediately. Investors who will spend money on particular mounted deposits will obtain rates of interest starting from 6.65 to six.85 per cent beneath the month-to-month revenue plan, 6.70 to six.90 per cent beneath the quarterly choice, 6.75 to six.95 per cent beneath the half-yearly choice, 6.85 to 7.05 per cent beneath the annual revenue plan, and cumulative plan with a maturity interval of 33 to 99 months.

    Investors who make premium deposits of lower than ₹2 Cr will obtain rates of interest starting from 6.00 to six.65 per cent beneath the month-to-month plan, from 6.05 to six.70 per cent beneath the quarterly plan, from 6.10 to six.75 per cent beneath the half-yearly choice, from 6.30 to six.85 per cent beneath the annual revenue plan, and from 6.20 to six.85 per cent beneath the cumulative plan, with maturity intervals between 15 and 44 months. Investors will obtain rates of interest of 5.80 to six.70 per cent on common deposits of lower than ₹2 Cr beneath the month-to-month choice, 5.85 to six.75 per cent beneath the quarterly plan, 5.90 to six.80 per cent beneath the half-yearly plan, 6.50 to six.90 per cent beneath the annual revenue plan, and 6.00 to six.90 per cent beneath the cumulative plan with a maturity interval of 12 to 120 months.

    View Full Image

    HDFC FD Rates  (hdfc.com)

    For the advantage of senior residents, HDFC Ltd has talked about on its web site that “Senior Citizens (60 years+) can be eligible for a further 0.25% p.a. on deposits upto ₹2 Crore (Other than Recurring Deposits). Additional ROI of 0.05% p.a. can be relevant on Individual deposits positioned/renewed by our Online Deposit system and auto-renewed deposits.”

    Subscribe to Mint Newsletters

    * Enter a legitimate e mail

    * Thank you for subscribing to our publication.

    First article

  • HDFC, PNB, ICICI Bank hike lending charges

    Mortgage agency HDFC Ltd, Punjab National Bank (PNB) and ICICI Bank on Wednesday introduced a rise of their lending charges.

    HDFC has elevated its Retail Prime Lending Rate (RPLR) on housing loans, PNB and ICICI Bank have introduced a hike of their marginal cost-based lending charges (MCLR), resulting in a rise in EMIs for debtors. The upward revision in charges will primarily result in a rise in EMIs for debtors. This is the third time HDFC has hiked its RPLR within the final one month. In May it hiked charges twice for a complete of 35 bps.

    🚨 Limited Time Offer | Express Premium with ad-lite for simply Rs 2/ day 👉🏽 Click right here to subscribe 🚨

    The Reserve Bank of India hiked the repo price — at which it lends short-term cash to banks — by 0.40 per cent to 4.40 per cent.

    Best of Express PremiumPremiumPremiumPremiumPremium

    HDFC hiked the RPLR on housing loans by 5 foundation factors. The price on residence loans as much as Rs30 lakh will likely be 7.15 per cent (7.10 per cent for ladies) and seven.40 per cent for loans between Rs 30 lakh and Rs 75 lakh. The revision would come into impact from right this moment itself. “HDFC increases its RPLR on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from June 1, 2022”, the corporate stated in an announcement.

    PNB stated that it has raised its marginal value of funds-based lending price by 15 foundation factors or 0.15 per cent throughout all tenures. The new charges are efficient from June 1, PNB stated in a regulatory submitting.

    According to PNB, with the revision, one-year MCLR has elevated to 7.40 per cent from 7.25 per cent earlier. Most of the loans are linked to the one-year MCLR price. The in a single day, one-month and three-month MCLR rose by 15 foundation factors to six.75 per cent, 6.80 per cent and 6.90 per cent, respectively, whereas the six-month MCLR elevated to 7.10 per cent. At the identical time, three-year MCLR elevated by 0.15 per cent to 7.70 per cent.

    ICICI Bank additionally revised the marginal value of funds-based lending price with impact from June 1, 2022, in accordance with its web site. Besides, Bank of India additionally raised marginal value of funds-based lending price on some tenor with impact from June 1, 2022.

    According to bankers, rates of interest are set to rise additional because the RBI is prone to hike Repo price additional within the June financial coverage.

  • HDFC launches spot provide for dwelling loans on WhatsApp

    NEW DELHI: Mortgage lender HDFC Ltd. has launched a first-of-its-kind ‘Spot Offer’ on WhatsApp, to offer an in-principle dwelling mortgage approval to consumers inside 2 minutes.

    This facility is on the market to salaried resident Indians, stated the agency.

    HDFC in affiliation with Cogno AI has developed the answer that’s constructed on the WhatsApp Business Platform to supply a conditional dwelling mortgage approval in a few minutes. Users need to provoke a dialog on HDFC’s WhatsApp quantity (+91 98670 00000) and supply some fundamental info, in just a few clicks by a guided conversational move. On foundation of the knowledge offered, a provisional/conditional dwelling mortgage provide letter is generated instantaneously. The dwelling mortgage spot provide facility may be availed 24×7. 

    Renu Sud Karnad, managing director, HDFC, stated, “This will facilitate potential homebuyers in availing a mortgage to purchase their dream dwelling. We at HDFC have been focusing and investing on digital transformation for higher buyer expertise and engagement. Demand for housing in India continues to stay extraordinarily sturdy. Today, there a powerful want to be a house owner and demand for housing continues to be from each, first-time owners in addition to these shifting up the property ladder – usually into bigger houses. Affordability right this moment can also be higher than ever and in India as revenue ranges rise, we are going to see youthful individuals with the ability to afford housing sooner in life.”

    HDFC’s ‘spot offer’ is constructed on the WhatsApp Business Platform, an enterprise answer that permits companies to speak with new and current prospects on WhatsApp in a easy, safe, and dependable method.

    Abhijit Bose, head of WhatsApp India, stated, “The method individuals and companies work together is altering quickly and types are more and more turning to easy and scalable platforms similar to WhatsApp to enhance buyer expertise. With WhatsApp Business Platform manufacturers can construct customised options that helps them meet their target market the place they need to be met and inside an interface that they’re aware of. We are excited in regards to the alternatives that HDFC’s new WhatsApp chatbot will unlock for customers. Such improvements have immense potential to contribute in direction of monetary inclusion in India.”

    HDFC has launched a number of digitally enabled companies to assist prospects handle their dwelling mortgage accounts. Today, over 91% of latest mortgage purposes are obtained by digital channels, up from lower than 20% earlier than the pandemic. In the housing finance area, HDFC was the primary establishment to put emphasis on on-line mortgage processing in the course of the lockdown. HDFC’s thrust on digital initiatives and inherent demand for housing has been instrumental in reaching the milestone of approving retail dwelling loans of over ₹2 lakh crore in FY22, the very best ever in a monetary 12 months, stated the agency.

    Subscribe to Mint Newsletters

    * Enter a sound e-mail

    * Thank you for subscribing to our e-newsletter.

  • HDFC Bank to boost Rs 50K crore in 12 months

    HDFC Bank — which has proposed a merger with its mum or dad HDFC Ltd — is planning to boost Rs 50,000 crore within the subsequent 12 months.

    “The bank proposes to raise funds by issuing perpetual debt Instruments (part of Additional Tier I capital), Tier II capital bonds and long-term bonds (financing of infrastructure and affordable housing) up to total amount of Rs 50,000 crore over the period of next 12 months through the private placement mode,” the personal sector lender mentioned in an alternate submitting.

    “The board of directors would consider this proposal at its ensuing meeting to be held on April 16, 2022,” it mentioned.

    The financial institution’s shares fell by 3.51 per cent to Rs 1,550.80 on Wednesday.

    As on March 31, 2021, the financial institution’s subordinated and perpetual debt capital devices amounted to Rs 9,127 crore (earlier yr: Rs 10,232 crore) and Rs 8,000 crore (earlier yr: Rs 8,000 crore) respectively, based on the financial institution’s Annual Report for 2021.

  • HDFC Capital closes $1.8-billion fund for reasonably priced housing

    HDFC Capital, an entirely owned subsidiary of HDFC Ltd and performing as an funding supervisor, has achieved the preliminary shut of its third fund of an estimated $1.88 billion (about Rs 13,989 crore) focussed on reasonably priced housing, the HDFC Capital Affordable Real Estate Fund – 3 (H-CARE-3).
    H-CARE 3 is one the most important funds raised to spend money on the residential actual property sector in India with buyers committing in extra of $1.22 billion in the direction of the primary shut, which mixed with potential reinvestments by the fund, creates an estimated complete fund corpus of $1.88 billion. The main investor in H-CARE 3 is an entirely owned subsidiary of the Abu Dhabi Investment Authority (ADIA). Set up in 2016, HDFC Capital is aligned with the Government of India’s purpose to extend housing provide and help the Pradhan Mantri Awas Yojana – ‘Housing for All’ initiative. H-CARE 3 combines with the HDFC Capital Affordable Real Estate Funds – 1 & 2, raised in 2016 and 2017 respectively, to create a $3 billion funding platform which has not too long ago been rated as one of many world’s largest personal finance platforms centered on improvement of reasonably priced housing.

    H-CARE 3 will present long-term, versatile funding throughout the lifecycle of reasonably priced and mid-income housing initiatives together with early-stage funding. In addition, H-CARE 3 may also spend money on know-how corporations (building know-how, fintech and clean-tech) engaged within the reasonably priced housing ecosystem.
    HDFC Capital’s goal is to finance the event of 1 million reasonably priced houses in India via a mixture of revolutionary financing, partnerships and know-how, while specializing in sustainability. The firm is in lively discussions with main international buyers to lift extra funds to be invested in reasonably priced housing in India.

    HDFC Chairman Deepak Parekh mentioned, “In India, housing will play an even more important role as a catalyst for growth with increased demand for affordable and mid-income housing. Combined with India’s growth prospects, I have never been as optimistic about the housing sector as I am today.”

  • Key options of HDFC’s Green & Sustainable Deposits

    NEW DELHI :

    Housing Development Finance Corporation Ltd (HDFC Ltd) has launched its “Green & Sustainable Deposits” with an intention to safeguard the atmosphere from local weather change. These mounted deposits can be directed in the direction of financing of inexperienced and sustainable housing credit score options and providers.

    HDFC’s deposits have been rated AAA by each CRISIL and ICRA for the previous 27 consecutive years, and could be positioned conveniently by way of its on-line deposit platform.

    According to a press launch issued by the agency, the important thing options of its Green and Sustainable Deposits are: Any Indian particular person, be it a resident or non-resident, is eligible to make these deposits; the interval of deposits ranges from  36 to 120 months; the deposits fetch rates of interest of as much as 6.55% yearly; senior residents (above 60 years) can be eligible for an extra 0.25% every year curiosity on deposits as much as ₹2 crore; extra return on funding of 0.10% every year can be relevant on these deposits as much as ₹50 lakh per calendar month, per buyer if they’re positioned or renewed by way of HDFC’s on-line platform.

    Deepak Parekh, chairman, HDFC Ltd, mentioned, “Today, sustainability is not about doing much less hurt, however about doing higher. HDFC anticipates rising demand for inexperienced options and has launched a Green & Sustainable Deposits providing for our clients who can develop their wealth whereas they contribute to serve the wants of a altering world. HDFC is dedicated to supporting India’s efforts for a sustainable and inexperienced low-carbon economic system.”

    Renu Sud Karnad, managing director, HDFC Ltd added, “We have always had a successful deposits programme. Though we do not have a target in mind, even a fraction of what we have been raising by way of our regular retail deposits can translate to a reasonable amount. The larger purpose is to provide another product to environmentally conscious customers who also want to contribute towards a better environment and are looking for a dependable platform which can help them contribute to this cause at a very nominal cost and least effort. For example, 10 bps translates to just ₹100 on a deposit of ₹100,000.”

    “We have also, as much as possible, used recycled paper for deposit certificates, application forms, and promotional material, and are also encouraging depositors to use our online platform by providing them 10 bps extra on their deposits,” mentioned Karnad.

    Subscribe to Mint Newsletters * Enter a sound e mail * Thank you for subscribing to our publication.

    Never miss a narrative! Stay linked and knowledgeable with Mint.
    Download
    our App Now!!

  • HDFC Ltd raises fastened deposit charges by as much as 25 bps

    NEW DELHI: If you wish to make investments your cash in AAA-rated fastened deposits (FDs), you possibly can think about HDFC Ltd. The mortgage lender has raised rates of interest on FDs maturing between 33 and 99 months by as much as 25 foundation factors (bps). One bps equals 0.01%. The charges are efficient 30 March.

    The 33-month fastened deposit will now fetch a 6.2% annualised return. The 66-month fastened deposit and 99-month fastened deposit will supply 6.5% and 6.65% annualised return respectively. Besides, senior residents will get a 25 bps further fee over and above the prevailing rates of interest.

    Also Read | Inside Mumbai’s new extortion financial system

    Anil Chopra, group director -Financial Wellbeing, Bajaj Capital stated, “The interest rate offered on the deposits is well-above the competitive investment options.”

    There are numerous tenure choices from 12 months to 120 months to select from based mostly on one’s requirement. Further, relying on the necessity there are numerous fee choices to select from like month-to-month, quarterly, half-yearly or yearly.

    “Company deposits that come with the highest ratings and from reputable and established groups may be considered by investors keeping their own risk profile in context. It is better to divide the investment amount across 2-3 such highly rated deposits and then invest for the medium-term horizon. Your total exposure to company deposits should be within a reasonable level of your total investible corpus,” stated Chopra

    HDFC has AAA score from each CRISIL and ICRA for 25 consecutive years.

    “These FD investments are meant for conservative investors who do not want to take a risk and are ok with it being taxed,” stated Mrin Agarwal, Director, FinSafe.in

    According to monetary planners, a standard method that an investor should observe whereas investing in any debt merchandise is to search for security, liquidity after which returns.

    Nishith Baldevdas, founder, Shree Financial, a SEBI Registered Investment Advisor, stated traders who’ve stuffed their security and liquidity buckets and needs to take some debt publicity only for returns can put money into such kind of FDs. “It is also pertinent to note that investors shouldn’t compare these FDs with bank FDs. These top-rated FDs don’t provide much liquidity when it comes to premature closure,” he added.

    The authorities, in the meantime, has withdrawn the order, issued on Wednesday, which had lower rates of interest on small saving schemes akin to Public Provident Fund (PPF) and National Saving Certificate (NSC). Interest charges on these are actually identical as that of March.

    (Do you’ve got a private finance question? Send in your queries at [email protected] and get them answered by trade specialists)

    Subscribe to Mint Newsletters * Enter a sound e-mail * Thank you for subscribing to our publication.