Syndicate Bank to raise ₹4,500-crore capital this fiscal

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Melwyn Rego
Melwyn Rego. Looking to strengthen capital position via equity and Basel-III compliant bonds: MD

Syndicate Bank is planning to raise ₹4,500 crore this financial year (2017-18) to bolster its share capital base.

“The bank this fiscal is planning to raise ₹2,500 crore under common equity (CET-1), ₹1,000 crore under AT-1, and ₹1,000 crore Basel-III compliant bonds,” said Melwyn Rego, Managing Director and CEO, Syndicate Bank.

“Each raising will be determined by the market. ₹500 crore of Basel-III compliant tier-II bonds was raised on May 3 to strengthen the capital position of the bank,” he added.

“In July, the bank raised AT-I bonds of ₹450 crore. Now we are evaluating various options to strengthen the capital position through equity and Basel-III compliant bonds,” he added.

The Capital Adequacy Ratio (CRAR) (Basel III) improved to 12.30 per cent as on June 30, 2017, from 11 per cent a year ago. Talking about net worth, Rego said: “The net worth of the bank as on June 30, 2017, was ₹11,856 crore in comparison to ₹11,488 crore last year (June 30, 2016).”

To bring down interest cost, the bank has launched a CASA (current and savings account) deposit campaign with the theme ‘Customised for business, personalised for individuals’.

“During the August 1 to September 30 campaign, we will be targeting corporates. This is mainly to increase opening of salary accounts. HNIs too will be targeted, and we will also focus on new account acquisition,” he added.

In addition to CASA deposits, the bank is also aggressively pushing for housing loan disbursements. Post demonetisation, the bank has strengthened its digital banking. “As part of providing enhanced customer service, we have implemented ‘Green PIN Project’ which allows our customers to generate new/reset existing debit card PIN through ATM any time.”

The bank has also launched “UPI application for the iOS platform of mobile phones”.

Customers can use Synd UPI on iPhones to send and receive money. Synd UPI is already available for mobile phones that run on android platform.

Source: http://www.thehindubusinessline.com/money-and-banking/syndicate-bank-to-raise-4500crore-capital-this-fiscal/article9805958.ece

5 lakh businesses opt for composition scheme under GST: Hasmukh Adhia

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“The figure of dealers opting for composition in GST is 5.12 lakh up to 30th (July). The last date for opting is August 16,” Revenue Secretary Hasmukh Adhia tweeted.

Five lakh businesses have opted for the GST composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy, the government said today.

Nearly 71 lakh excise, service tax and VAT assessees have migrated to the GST Network (GSTN) till July 25. Besides, another 12 lakh new registrations came about under the Goods and Services Tax (GST) regime.

“The figure of dealers opting for composition in GST is 5.12 lakh up to 30th (July). The last date for opting is August 16,” Revenue Secretary Hasmukh Adhia tweeted.

The composition scheme is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs 75 lakh — Rs 50 lakh in the case of eight north-eastern states and the hilly state of Himachal Pradesh. The objective behind it is to bring simplicity and reduce the compliance cost for small taxpayers.

The scheme is optional under which manufacturers other than those of ice cream, pan masala and tobacco products have to pay a 2 per cent tax on their annual turnover. The tax rate is 5 per cent for restaurant services and 1 per cent for traders.

As per the Central GST Act, businesses are eligible to opt for the composition scheme if a person is not engaged in any inter-state outward supplies of goods and not into making any supply of goods through an electronic commerce operator who is required to collect tax at source.

While a regular taxpayer has to pay taxes on a monthly basis, a composition supplier is required to file only one return and pay taxes on a quarterly basis.

Also, a composition taxpayer is not required to keep detailed records that a normal taxpayer is supposed to maintain.

Source: http://economictimes.indiatimes.com/articleshow/59844611.cms

Businesses can start filing July returns on GSTN from August 5

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To make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout.

The first tax returns under the new Goods and Services Tax (GST) regime can be filed from Saturday and the facility will remain open till August 20, GST Network CEO Navin Kumar said today.

Businesses can start filing their first GST returns and pay taxes for July on the portal of GST Network — the IT infrastructure provider for the new indirect tax regime, beginning August 5, he told PTI here.

To make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout.

So, the GST returns for July and August will be filed on the Goods and Services Tax Network (GSTN) portal by filling up GSTR 3B form.”We will start the facility of filing interim return form GSTR 3B by August 5 and any registered entity who has transacted business in July will have to file the return by August 20,” Kumar told PTI.

GSTN has tied up with 25 agency banks authorised by the RBI to collect taxes, he said.

“We have tied up with all major banks, both private and public. The facility for tax payment is already on and Integrated GST is being collected. Along with filing of returns by August 20, payments for central and state GST will also come in,” said Kumar, in-charge of the biggest technology backbone created for the new indirect tax regime.

Over 71.30 lakh excise, service tax and VAT payers have migrated to the GSTN portal with 13 lakh fresh registrations.

The final GST returns for July will have to be filed by these businesses by September 5 instead of August 10.

Companies will have to file sale invoice for August with GST Network by September 20 instead of September 10 earlier. The sales returns for September will have to be filed by October 10.

Companies and financial institutions mop up close to Rs 56,000 crore by way of fund raising through equities

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Companies and financial institutions have mopped up close to Rs 56,000 crore by way of fund-raising through equities so far in 2017. This is about 20% higher than the amount of Rs 46,733 crore raised in 2016.

Companies and financial institutions have mopped up close to Rs 56,000 crore by way of fund-raising through equities so far in 2017. This is about 20% higher than the amount of Rs 46,733 crore raised in 2016. The fund-raising has been helped by a booming stock market; the Sensex has gained by 22% in the year so far.

On Monday, the benchmark gauge closed at 32,514.94.The Nifty has put on 23.10% in 2017 closing Monday’s session at 10,077.10.Since the beginning of the year, firms have mopped up Rs 55,905 crore through initial public offerings (IPO), offers for sale (OFS), Qualified Institutional Placements (QIP), and rights issues among others, data from Prime Database showed.

A significant portion — close to 61% — of the total equity raised this year has been by way of QIPs at Rs 34,182 crore. State Bank of India (SBI)’s Rs 15,000 crore offer has been the biggest in 2017 so far — the lender had issued around 52.21 crore new shares at a price of Rs 287.25.

The issue was aimed at augmenting the bank’s capital adequacy ratio and for general corporate purposes.This is the highest in the past eleven years. Banks constituted 84% of the amount raised through QIPs.

Market participants said the need for Tier 1 capital and the necessity to meet Basel III requirements as the reasons for banks opting for QIPs.

After QIPs, the maximum amount of money was raised through IPOs in 2017.

In 2017, companies raised Rs 14,026 crore through IPOs. Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend.

BSE, HUDCO, CDSL, Avenue Supermarts, Shankara Building Products and S Chand and Company are some of the companies who completed their IPOs in the last seven months.

The newly listed companies have given good returns to investors, the BSE IPO index a gauge of newly listed companies rose by 40% year to date.

Small enterprises raised Rs 716 crore through SME IPOs, this is the highest since 2012.

Market participants said the buoyancy in the primary market is set to continue with more than a dozen companies gearing up to hit the market with their offerings.

 

Source: http://www.financialexpress.com/market/companies-and-financial-institutions-mop-up-close-to-rs-56000-crore-by-way-of-fund-raising-through-equities/788648/

77.5L traders registered under GSTN till July 18

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The Government on Friday said as many as 77.5 lakh traders are registered on GSTN and help desks have been set up in every commissionerate to facilitate filing of tax return. “Till July 18, 2017, the total number of GSTIN (Goods and Services Taxpayer Identification Number) registration is 77,55,416,” Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.

He further said Internet is not required for doing or conducting business, but it would be required only for the purpose of filing of returns under the GST. “The Government has ensured that the return filling process is made convenient for all taxpayers by setting up help desks in every commissionerate and by appointing GST Suvidha Providers,” he said.

Gangwar in another reply said it is difficult to predict whether corruption will be wiped out, but the implementation of GST will definitely bring about transparency in business operations related to taxation. The implementation of GST in itself is expected to have a positive impact on the overall growth of the economy, he said, adding that it is also expected to have a positive impact on the ease of doing business and making India an even more attractive destination for foreign investments.

Various studies, including that from NCAER, have estimated that growth in GDP to be around 1-2 per cent due to the implementation of GST.Replying to another question, Gangwar said, since GST has been implemented only with effect from July 1, it cannot be stated that it helps to bring out black money at this moment.However, he said, the provision in SGST, CGST, UTGST and IGST have a self policing mechanism.

Source: Daily Pioneer

GST deadline: Tax composition scheme last date extended till August 16

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The government today extended the deadline for small businesses to opt for the composition scheme in the GST regime by nearly four weeks to August 16.

The government today extended the deadline for small businesses to opt for the composition scheme in the GST regime by nearly four weeks to August 16.

Small businesses with turnover of up to Rs 75 lakh earlier had time till today to opt for the scheme in the Goods and Services Tax regime. “The Board hereby extends the period for filing an intimation in Form GST CMP-01… up to August 16, 2017,” the Central Board of Excise and Customs (CBEC) said in an office order.

To opt for composition scheme, the taxpayer needs to log into his account at the GST Portal www.gst.gov.in and select ‘Application to opt for the Composition Scheme’ under ‘Services’ menu. They have to fill up the Form GST CMP-01 to opt for the scheme.

Under composition scheme, traders, manufacturers and restaurants can pay tax at 1, 2 and 5 per cent, respectively.  Businesses opting for the composition scheme will see a lesser compliance burden as they will have to file returns only once in a quarter as against monthly returns to be filed by other businesses.

There are over 70 lakh excise, VAT and service taxpayers who have migrated to the GSTN portal for filing returns in the GST regime which kicked in from July 1.  Besides, there are over 8 lakh new taxpayers who have registered on the portal. These new registered taxpayers can opt for the composition scheme at the time of registration.

Source: Financial Express