L&T Finance Offering 9.35% Interest on NCDs. Should You Invest?
L&T Finance (LTF), a systemically important non-banking finance company (NBFC) plans to raise Rs1,500 crore from the capital market through secured non-convertible debentures (NCDs). This issue of NCDs will be the first tranche of a series of borrowings planned by the NBFC.
 
Subscriptions to the NCD will commence on 6 March 2019 and will end on 20 March 2019, or earlier, at the...
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EPF rate hiked to 8.65% for 2018-19 by EPFO board
The Employees' Provident Fund Organisation (EPFO) board here on Thursday raised the interest rate on Employees' Provident Fund (EPF) by 10 basis points to 8.65 per cent for 2018-19. It will benefit around 5 crore people of the salaried class.
 
"In today's CBT meeting, the main agenda was the interest rate. Considering everybody's views, it was decided to raise the interest rate by 10 bps to 8.65 per cent," Labour Minister Santosh Gangwar told IANS after chairing the Central Board of Trustees (CBT) meeting.
 
This is the first increase in interest rates since 2016. From 8.8 per cent in 2015-16, it fell to 8.65 per cent in 2016-17 and further to 8.55 per cent in 2017-18. In FY18, the rate was at a five-year low. For 2013-14 and 2014-15, it stood at 8.75 per cent.
 
"We took good care of the workers' money and it was not misused. Despite our increasing the interest rate to 8.65 per cent, we are saving Rs 151 crore as surplus. I am confident the Finance Ministry will approve this. There was full consensus for today's decision," he said.
 
The CBT, which has representatives from the government, employers and trade unions, will hold another meeting to discuss on pension issues. 
 
The interest amount will be credited directly into the subscribers' accounts after Finance Ministry's approval.
 
"Over Rs 54,000 crore for 2018-19 will be distributed among 20 crore subscribers," EPFO CEO Sunil Barthwal told IANS. The EPFO's total corpus is around Rs 8 lakh crore, he said and added, there are about 5 crore active EPF subscribers.
 
The hike has come as a pleasant surprise as it was being speculated that the retirement fund body would keep the interest rate at 8.55 per cent, considering the fiscal stress on the government. But it was in line with the populist measures being taken by the government ahead of the general elections, likely in April-May.
 
Had the CBT decided to raise the rate to 8.70 per cent, instead of 8.65 per cent, the EPFO would have faced a deficit of Rs 158 crore, an official said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Muthoot Finance Offering 10% Interest on NCDs. Should You Invest?
Muthoot Finance, a non-banking finance company (NBFC) known for providing personal and business loans against gold or gold jewellery, plans to raise Rs750 crore through an issue of secured non-convertible debentures (NCDs). Subscriptions to the NCD commenced on 14 February 2019 and will end on 14 March 2019, or earlier, at the company’s discretion. The company is offering up to 10% coupon...
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