Companies & Sectors
DCB’s high Q1 growth is matched by steady asset quality, says Nomura
Development Credit Bank added seven new branches during the quarter, taking the total to 101 branches during the quarter, says Nomura Equity Research
 
Development Credit Bank (DCB) continued its impressive run, with its twelfth consecutive quarter of 50%-plus y-o-y earnings growth helped by steady asset quality, stable NIMs and improved operating leverage, according to Nomura Equity Research. While reported PAT was Rs428 million, even after excluding one-time treasury gains and bad debt recovery, PAT of Rs350 million came in 17% higher than Nomura’s estimate. The bank also added seven new branches during the quarter, taking the total to 101 branches (increase in network of 17% y-o-y).
 
 
Key highlights
Loan growth of 19% y-o-y was driven by a 44% y-o-y increase in the mortgage/LAP portfolio and a 40% y-o-y increase in other retail loans (including gold loans). SME and corporate loans dropped sequentially while agri loans were flat q-o-q. The mix of mortgage/LAP as a percentage of total loans increased to 40% for June 2013, from 33% in 1QFY12. The proportion of SME loans on the books has been easing off gradually. The bank has managed to hold on to its loan yields q-o-q despite this shift in mix.
 
 
CASA (credit account savings account) deposits increased 11% y-o-y, but CASA per branch (on a one year lagged basis) has been flat at Rs270 million over the past few quarters. Nomura expects the CASA ratio to pick up again in FY14F, with the addition of 10 new branches in FY13 and seven in the reporting quarter (including three Tier-1 branches).
 
NIM (net interest margin) contracted by 8 basis points (bps) q-o-q despite core spreads staying flat q-o-q on marginally lower LDRs and likely lower yields on its bond portfolio. The retail deposit proportion was 80%. Nomura expects NIM to remain at 3.3%- 3.4% in FY14F.
 
While core fee income was steady at Rs224 million, investment book gains of Rs160 million and bad debt recovery of Rs37 million helped to drive a strong earnings beat.
 
 
GNPL (gross non-performing loans) increased by 5% q-o-q, mainly in its corporate book, while the legacy NPLs on the personal and CV (commercial vehicle) loan portfolio continued to decline. On its mortgage book, the GNPL ratio remained low at 85bps (or 122bps assuming a one-year lag). Nomura expects the headline GNPL ratio to decline going into March 2014.
 
The quarter also highlighted the impact of operating leverage playing out with the cost-income ratio dropping to 60%, from 73% in Q1FY13.
 
DCB currently trades at 1.2x our FY14F ABV and 9x Nomura’s FY14F EPS forecasts. At the target price of Rs60, DCB would trade at 1.4x FY14F ABV of Rs42.6 and 10.9x FY14F EPS of INR5.5 for an ROA of 114bps, said Nomura in its concluding remark.
 

User

Nifty, Sensex in no man’s land: Wednesday Closing Report
Nifty has to break below today’s low for a downtrend to start while a close above 6,015 will be needed for a strong upmove
 
The market settled higher on gains in FMCG, consumer durables and IT sectors. Hike in FDI limits in various sectors, announced by the government last night, also supported the sentiments. Nifty has to break below today’s low for a downtrend to start while a close above 6,015 will be needed for a strong upmove. The National Stock Exchange (NSE) reported a higher turnover of 72.12 crore shares and advance-decline ratio of 521:822.
 
The market opened higher this morning boosted by the government’s announcement to ease FDI caps in various sectors in a bid to woo foreign investments. Markets in Asia were mostly higher ahead of Federal Reserve chairman Ben Bernanke’s address to the US Congress later today. On the other hand, the US markets closed lower overnight on dismal earnings from corporates.
 
The Nifty opened 17 points up at 5,972 and the Sensex resumed trade at 19,929, a gain of 78 points over its previous close. Support from consumer durables, capital goods, power, fast moving consumer goods and technology stock following the government’s FDI announcement kept the market firm in morning trade.
 
The government on Tuesday liberalised FDI limits in a dozen sectors, including allowing 100% in telecom and higher limits in “state-of-the-art” defence manufacturing, to boost the sagging economy. The FDI cap for civil aviation was, however, left unchanged at 49%.
 
The upmove saw the benchmarks hitting their intraday highs at around 1.30pm. The Nifty rose to 5,990 and the Sensex climbed to 19,983 at their respective highs.
 
However, the market soon pared its gains and slipped into the negative on pressure from realty, banking and capital goods stocks after the RBI on Monday hiked lending rates for banks.
 
The indices touched their lows in the post-noon session with the Nifty falling to 5,927 and the Sensex slipping to 19,779.  However, buying in FMCG, IT and consumer durables sectors in late trade led the market higher.
 
The benchmarks settled off the highs on the government’s decision to hike FDI limits in a host of sectors. The Nifty added 18 points (0.30%) to 5,973 and the Sensex settled 98 points 90.49%) higher at 19,949.
 
 
Among the broader indices, the BSE Mid-cap index fell 0.50% and the BSE Small-cap index fell 0.22%.
 
Six sectoral indices closed in the positive. BSE FMCG (up 3.39%); BSE Consumer Durables (up 1.10%); BSE IT (up 1%); BSE Oil & Gas (up 0.61%) and BSE Power (up 0.56%) were the top five gainers. The top losers were BSE Bankex (down 2.32%); BSE Metal (down 1.82%); BSE Auto (down 0.77%); BSE Realty (down 0.71%) and BSE PSU (down 0.64%).
 
Out of the 30 stocks on the Sensex, 15 stocks settled higher. The main gainers were Hindustan Unilever (up 9.86%); NTPC (up 3.18%); Wipro (up 2.96%); ITC (up 2.28%) and Tata Power (up 1.96%). The main losers were Tata Steel (down 3.26%); HDFC Bank (down 2.36%); ICICI Bank (down 2.29%); Mahindra & Mahindra (down 2.23%) and Jindal Steel & Power (down 2.03%).
 
The top two A Group gainers on the BSE were—Hindustan Unilever (up 9.86%) and Indraprastha Gas (up 5.76%).
 
The top two A Group losers on the BSE were—Union Bank of India (down 7.24%) and Prestige Estates (down 7.17%).
 
The top two B Group gainers on the BSE were—Nitco (up 19.99%) and Archidply Industries (up 19.97%).
 
The top two B Group losers on the BSE were—Real Realty Mgmt (down 19.94%) and Nissan Copper (down 19.27%).
 
Of the 50 stocks on the Nifty, 20 ended in the in the green. The major gainers were Hindustan Unilever (up 9.13%); Asian Paints (up 3.50%); Ambuja Cements (up 2.97%); NTPC (up 2.48%) and ITC (up 2.32%). The key losers were Tata Steel (down 3.44%); Bank of Baroda (down 3.18%); Axis Bank (down 3.08%); M&M (down 2.79%) and Ranbaxy (down 2.78%).
Markets in Asia closed mostly higher on gains in commodity-related companies and optimism ahead of Fed chief Ben Bernanke’s semi-annual policy report. China's benchmark index fell for the first time in three days despite FDI in June surging over 20% from a year earlier.
 
The Hang Seng gained 0.28%; the Jakarta Composite advanced 0.75%; the KLSE Composite rose 0.13%; the Nikkei 225 added 0.11% and the Seoul Composite surged 1.13%. On the other hand, the Shanghai Composite dropped 1.01%; the Straits Times declined 0.52% and the Taiwan Weighted shed 0.01%.
 
At the time of writing, the CAC 40 of France was down 0.40%; the DAX of Germany declined 0.510.46% and UK’s FTSE 100 fell 0.46%. At the same time, US stock futures were in the negative.
 
Back home, institutional investors—foreign and domestic—were net sellers in the equities segment on Tuesday. While FIIs pulled out funds totalling Rs357.40 crore, DIIs withdrew Rs210.55 crore from stocks.
 
The board of directors of Mawana Sugar has approved to dispose off 23,00,000 equity shares of face value of Rs5 each comprising 5% paid up equity capital held by the company in Ceratizit India Pvt Ltd, a joint venture company, for a total consideration of Rs 16 crore. The stock fell 5.81% to close at Rs7.30 on the NSE.
 
Piramal Glass’ subsidiary in Sri Lanka, Piramal Glass Ceylon PLC has on July 17, 2013 agreed to sell the balance portion of its land at Rathmalana for a consideration of Sri Lankan Rupees 415 million (equivalent to RsRs187.66 million approximately). The final sale transaction is likely to be completed on or before 30 November 2013. The stock rose 1.10% to close at Rs92 on the NSE.
 

 

User

Economy & Nation Exclusive
How to easily file I-T returns online, free of cost
Filing of income tax returns online is very easy and free, especially for salaried people and there is no need to visit paid sites for e-filing your I-T returns
 
Every year July not only brings heavy downpour but also makes every salaried taxpayer rush to file income tax (I-T) returns. Filing returns before 31st July has now become quite easy, especially with the electronic filing; one can file it online without taking any help from accountants or a chartered accountants (CAs).
 
There are a number of websites like Taxspanner.com (charges Rs249 onwards), HRblock.in (Rs99 onwards), Taxsmile.com (Rs250 onwards), taxshax.com (Rs181 onwards), myITreturn.com (free for those with income of less than Rs5 lakh, for others Rs299 onwards) that offer e-filing of tax returns for a small fee. 
 
However, anyone can file his/her I-T return directly from the Income Tax department’s website https://incometaxindiaefiling.gov.in/, without paying any money. I had used both—the paid service as well as free service for filing my I-T returns. Although, both services come out as good, I found the I-T department’s service little bit faster and satisfactory compared to other sites.
 
For filing I-T returns online (for salaried people), you need to have your Form 16 (for FY2012-13 or AY2013-14) ready with you. You will also need your bank statements showing interest or any other income earned, if any, during April 2012 to March 2013. Here are some tips or guidelines for filing their I-T returns online based on my personal experience...
 
1. While we often remain dependent on accounting professionals for tax computation, one can always verify or calculate his/her own tax liabilities. I have been using a very good and free software (actually an Excel file) from a Bengaluru-based software professional Nithyanand. One can download the Excel file from http://www.ynithya.com/taxcalc/taxcalc.htm and calculate the approximate tax liabilities. For FY2012-13, you will need to download the specific Excel file either .XLSX or .XLS version. 
 
This simple utility comes with an excellent help or guidelines, using which all you need to do is enter your data. Once done, it gives a fair idea about your approximate income tax liability, and whether you had paid the tax in full or not. (In case it is not paid in full, you can always pay it through the NSDL website or online banking after selecting the appropriate challan. After making the payment, you would receive a challan identification number that is required for filing the actual return form)
 
2. Visit the I-T department site for filing returns online— https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?nextPage=efile . If you are already registered, then simply log in. If not, you can register as a new user and then log in. You can visit the site and download forms without login as well, but for submitting tax returns online, one needs to be a registered user and then log in.
 
3. After login, select appropriate Income-Tax return (ITR) form. There are five types of ITR forms, ITR-1 or Sahaj, ITR-2, ITR-3, ITR-4 and ITR-4S (Sugam) for individuals or HUFs. If you do not have any other income except from salary, you can select ITR-1. To know more about the ITR forms you can visit https://incometaxindiaefiling.gov.in/portal/selectforms.do 
 
4. Download a small file or return preparation software as the I-T department calls it. This comes in .zip format that can be unzipped to open the Excel file. There is also a help file that gets downloaded along with this software, which you can refer to for enabling macros, if needed.
 
5. Open the Excel file. Fill in the data on the first page using your Form 16 and Nithya’s calculator. You need to fill in all fields marked in green colour. If you have a home loan for a self-occupied house, then you can mention the interest paid using '-' sign in the income from one house property column. (Principal on home loan up to Rs1 lakh is exempted under chapter VI (Section 80C)) Check and verify the data you filled in the form. Double check and verify it with your source files or with Form 16 and Nithya’s calculator. Then click on the ‘Validate’ tab at the top corner on the right side. This will show if there is any data missing. If every field is filled in, it will give you an OK. You can then click on ‘Next’ tab.
 
6. This will open the second page (TDS). Here you need to fill in details like tax deduction number (TAN) of your employer/s (It is mentioned in the Form 16), and the tax deducted or TDS (Section 22 on the form). You need to provide same details of other employer/s if there is a change in the job during the year. In case, you have paid the tax on your own, then provide the details like BSR code, challan number and amount in Section 24 near the bottom of the page. Repeat the validation process and if everything is OK, then go to next page.
 
7. On the next page, you need to provide your bank account number, IFS code of the bank (it is mentioned on your chequebook) and type of account. Make sure that the bank account number is your regular and personal account rather than salary account. This helps in case there is any refund payable to you. Often, people quote their salary account in this form and find it difficult to get tax refunds in case of change in job or closure of this account.
 
8. Fill in other details like your name, place, PAN number and date. Double-check and verify all data you had entered on this page. If everything is right and there are no errors, click on the ‘validate’ tab. After a validation check, click on the ‘Generate’ tab on first page. This will create an xml file. Store it on your PC/desktop or laptop.
 
9. Login to the https://incometaxindiaefiling.gov.in/portal/login.do site using your username and password. Click on the 'Quick e-file ITR' link on the left hand side. Select the relevant form (here ITR-1) and assessment year (here AY2013-14). Select prefill address from suitable options. If you have digital signature then you can use it. Otherwise, you can select 'No' option and proceed. Click on ‘submit returns’.
 
10. Browse to select the xml file, you had created earlier, and click on ‘Upload’ button.
 
11. If the uploading is successful, you will get an on-screen acknowledgement. Take a print-out of the acknowledgement or ITR-V form. You would also receive the acknowledgement in your email inbox. This is a password protected file. You can read the directions on the website to open this file.
 
12. If you are using digital signature, then after receiving the acknowledgement, the process for e-filing is over for you.
 
13. In case you are not a using digital signature for filing returns, you need to sign on the acknowledgement or ITR-V form. Make a Xerox copy of this signed form. Send the signed form to...
 
Income Tax Department – CPC,
Post Bag No - 1,
Electronic City Post Office,
Bengaluru - 560100, Karnataka
 
Use ordinary post or Speed Post for sending the form, within 120 days after submitting your returns online. The I-T Department does not accept forms sent through registered post or courier.
 
14. Remember, you just need to send the signed acknowledgement or ITR-V form. There is no need to send either Form 16 or any other document to the CPC. However, keep all relevant documents safely in your possession.
 
15. After few days, you will receive an email from the CPC that would acknowledge the receipt of your ITR-V form. This makes the e-filing of I-T returns complete.
 

User

COMMENTS

Shanky kansal

3 years ago

email me on shankyknsl@gmail.com for online return at cheaper rate

harishankar

4 years ago

my income is more than 5lacks but still i'm not filling return so how i fill.

deepaksb

4 years ago

Dependence on a private co.like Microsoft by Government department like income tax is just NOT ACCEPTABLE. (I have nothing against Microsoft as an Organization).

Many Govt./PSU banks and Insurance cos.portal used by an individual small users supports ONLY Microsoft products like windows and Internet explorer.

All consumer oriented organizations/experts must get together and collectively -IF REQUIRED FORCE-GOVT.DEPARTMENTS to ensure all online services used by general population , salaried and small tax payers must be allowed to use free/open software like OPEN OFFICE etc.freely available on public domain.

Its not completely ruled out that private high tech corporations have GREASED palms of Govt.owned organisations' software developers. ( so that software developers generate packages used by common population which supports ONLY Microsoft and other such cos. to increase sale of their software products).Such actions of using a particular software also defies laws of earlier MRTP act/Competition commission act.

Comments by experts on above subject is welcome and a positive action will be in the interest of common population, small income group and retired persons.

Vyas

4 years ago

It happened with me too. It is more serious one. The rogue CA has been telling me, he has been attending the scrutiny hearings and charged me but he never attended.

Tapan Chatterjee

4 years ago

One rogue CA duped my wife and me by (i) not filing the IT returns despite claiming to have done; (2) running away with our files. Going to the Police was no help except to give us a letter outlining the incident.
After this sordid experience I launched myself to file it on-line with much customary trepidation of something unknown. It turned out to be Very Simple and easy too.
I'm Very Happy that you've very lucidly described the process. Thank you Very Much.
Readers Please GO for it!

REPLY

Vyas

In Reply to Tapan Chatterjee 4 years ago

It happened with me too. It is more serious one. The rogue CA has been telling me, he has been attending the scrutiny hearings and charged me but he never attended.

Vyas

4 years ago

My last working day is in June 2012. I have not been working since then (I am not working currently) and do not have any income other than bank interest. Please advise which form I should submit.

REPLY

rajan gupta

In Reply to Vyas 4 years ago

You can file Itr-1

Vyas

In Reply to rajan gupta 4 years ago

forgot to mention, i have also invested in stocks. Is ITR1 fine.

So, during FY 2012-13, I have salary income,, interest income and short term capital gain on shares.
FY13-14 (current financial year) I have only bank interest and shares.

rajan gupta

In Reply to Vyas 4 years ago

You have to file ITR-2 due to short term capital gain

S BHASKARA NARAYANA

4 years ago

Sir, My father, aged 76, has only Rs.1,60,000/- income, of which Rs.54,000/- from Bank's deposits interest and rest his pension. Does he need to file return? If so, online or with ITO's desk?

REPLY

rajan gupta

In Reply to S BHASKARA NARAYANA 4 years ago

No need to file Income tax return as his gross total income is less than exemption limit (2,50,000)

R Nandy

In Reply to S BHASKARA NARAYANA 4 years ago

It is not required.But,please note that some branches of SBI are asking for IT returns of previous year before accepting 15g for Senior Citizens Savings Scheme.So,filing a return which costs nothing will be on the safer side.

R Nandy

In Reply to R Nandy 4 years ago

Correction: Please read 15G as 15H

S BHASKARA NARAYANA

In Reply to R Nandy 4 years ago

Thank you very much.

S BHASKARA NARAYANA

In Reply to R Nandy 4 years ago

Thank you very much.

S BHASKARA NARAYANA

4 years ago

Sir, My father, aged 76, has only Rs.1,60,000/- income, of which Rs.54,000/- from Bank's deposits interest and rest his pension. Does he need to file return? If so, online or with ITO's desk?

shailesh kulkarni

4 years ago

Thanks for the neat explanation.
I was able to file mine. :)

Abhishekpy

4 years ago

Thanks for the valuable information yogesh.

I would like to warn people to avoid myITretuns (skorydov)as i had pretty bad experience with them.

They had shared my data with some third party and i was getting spam calls from a DST called "M/S Andromed BPO"

There was an option "Add-On service - Tax planning for 2012-13" which was interpreted by them as they can share my details with third party.

Its better to file your returns directly on government website that to opt for these private players

Deepak Sholapurkar

4 years ago

Hi,
filing returns through
https://incometaxindiaefiling.gov.in

is easy and free to use.
Now even no need to fill up the .xls file and generate xml then upload the same.
One can directly fill online using

in https://incometaxindiaefiling.gov.in.
e-file-->"Prepare and Submit Online ITR"

here you need to fill online all the details that you used to fill in xls and submit it.
and that will generate ITR-V form sign it and send as usual.

Deepak.Sholapurkar

nagesh kini

4 years ago

Great job Yogesh.
Extremely simply put across in the most user friendly terms.
Suggest have minimal number of bank accounts - less of head aches.

Rakesh

4 years ago

Excellent piece of information. Will be helpful for one and all.
Keep up the good work.

R Nandy

4 years ago

Additionally in https://incometaxindiaefiling.gov.in/portal/login.do now the data can directly be fed online into an online form and returns can be submitted.I used this method last week to file the returns.This is useful for people who dont have MS office installed or are Linux users.


The problem with the xml generation is that the macros don't execute if run on packages like OpenOffice.MS Office is mandatory to execute the macros in the ITR XLS sheets.

REPLY

deepaksb

In Reply to R Nandy 4 years ago

Dependence on a private co.like Microsoft by Government department like income tax is just NOT ACCEPTABLE. (I have nothing against Microsoft as an Organization).

Many Govt./PSU banks and Insurance cos.portal used by an individual small users supports ONLY Microsoft products like windows and Internet explorer.

All consumer oriented organizations/experts must get together and collectively -IF REQUIRED FORCE-GOVT.DEPARTMENTS to ensure all online services used by general population , salaried and small tax payers must be allowed to use free/open software like OPEN OFFICE etc.freely available on public domain.

Its not completely ruled out that private high tech corporations have GREASED palms of Govt.owned organisations' software developers. ( so that software developers generate packages used by common population which supports ONLY Microsoft and other such cos. to increase sale of their software products).Such actions of using a particular software also defies laws of earlier MRTP act/Competition commission act.

Comments by experts on above subject is welcome and a positive action will be in the interest of common population, small income group and retired persons.

pravsemilo

In Reply to R Nandy 4 years ago

Very true indeed. Linux user here.

This facility was not available last year though. I had to file my returns on a online portal.

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