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Economic Times
an hour ago
- Economic Times
Glen Industries IPO to open on July 8; fixes issue price band at Rs 92-97 per share
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Time of India
an hour ago
- Time of India
RBI floating rate bond offers 8.05% return: FRSB outperforms most bank FDs and PPF; what conservative investors need to know
AI image The Reserve Bank of India has maintained the interest rate on its Floating Rate Savings Bonds (FRSBs) at 8.05% for the July–December 2025 period, offering one of the highest government-backed returns currently available in the fixed-income market. While this rate remains unchanged from the January–June 2025 period, it places FRSBs well ahead of most bank fixed deposits (FDs) and small savings schemes, including the Public Provident Fund (PPF) and National Savings Certificate (NSC), in terms of returns, making it an attractive option for long-term conservative investors, according to an ET analysis. RBI floating rate bond outperforms most bank FDs According to data from Paisabazaar quoted by ET, the RBI bond's 8.05% yield is higher than the long-term FD interest rates offered by major banks. Axis Bank, HDFC Bank, and ICICI Bank are offering 6.4–6.6% interest on 5–10 year FDs, while the State Bank of India (SBI) is paying just 6.05% for the same tenure. Even banks like Punjab National Bank and Kotak Mahindra cap their long-term FD rates at 6.5% and 6.25% respectively. A handful of small finance banks (SFBs) are offering slightly better returns. Jana Small Finance Bank tops the list at 8.2%, followed by slice SFB at 7.75% and Suryoday SFB at 8%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo However, even the best of these still fall short of matching the sovereign guarantee that backs the RBI's floating rate bonds, which enjoy complete government protection with no investment cap. Safety plus rate advantage 'Given that the bonds are issued by the RBI, they provide the highest safety to investors, more than any fixed deposit available in the market,' said Suresh Darak, Founder, Bondbazaar. 'Moreover, at 8.05%, the returns are higher than bank FDs, which are currently at around 7%. Since the rates are recalibrated every six months, investors could benefit further if the interest rate cycle turns upward,' he added. However, investors need to be comfortable with the longer lock-in period of 7 years for individuals below 60. Compared to the 5-year lock-in for the SCSS or the 15-year tenure of PPF, the RBI bond's lock-in appears moderate. The bond does offer early exit options for senior citizens but with tiered holding conditions: those aged 60–70 can exit after 6 years, 70–80 after 5 years, and those above 80 after 4 years. Rate linked to NSC, recalibrated every 6 months The 8.05% return on the RBI bond is pegged 35 basis points above the prevailing NSC rate, which currently stands at 7.7% for the July–September quarter. The next reset for the RBI bond will occur on January 1, 2026. The interest is paid out twice a year — on January 1 and July 1 — providing a steady income stream. This linkage also offers some protection in case small savings rates are reduced. For instance, if the NSC rate were to drop to 7.2% in the next quarter, the bond would still yield 7.55%, keeping it ahead of most long-term FD and PPF rates. Outperformance even during low-rate cycle Data from India Post shows that from April 2020 to December 2022, the NSC interest rate stood at a historic low of 6.8%. Despite this, RBI's FRSBs yielded 7.15% during that time — still significantly higher than bank FD rates, which were mostly between 5–5.5%. 'With a low entry requirement of just Rs 1,000 and no maximum limit, these bonds are accessible to a broad range of savers,' said Vineet Agrawal, Co-founder of bond investment platform Jiraaf. 'Backed by a sovereign guarantee, these 7-year bonds pay interest every January 1 and July 1, making them ideal for conservative investors seeking steady income. These bonds clearly outperform typical bank FDs and offer more stability amid uncertain rate cycles,' he added. Better than PPF and SCSS for high-value savers The RBI bond's edge becomes clearer when compared with other small savings schemes. The PPF offers 7.1% interest but comes with a 15-year lock-in and a maximum annual contribution of Rs 1.5 lakh. The SCSS offers 8.2% interest with a 5-year lock-in but restricts investment to Rs 30 lakh per person. Senior citizens who have exhausted their SCSS limit can use RBI bonds to extend high-yielding exposure. Since there's no cap on investment in FRSBs, they serve as an effective second-tier retirement investment instrument. Interest payouts every six months make them even more suitable for retirees who want periodic income without market volatility. Rate risk remains low for now While there is some concern that the RBI's 100 basis point repo rate cut this year may eventually push small savings rates lower, market watchers believe any reduction in NSC rates is likely to be gradual. Small savings schemes are politically sensitive and widely subscribed. As such, the government is unlikely to mirror repo rate cuts fully in small savings adjustments. Even if it does, the semi-annual recalibration of RBI bonds provides a cushion — any change would only be reflected after six months. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 hours ago
- Time of India
Shipping policy revamp: How Centre plans to promote domestically-flagged ships; 200 ships worth Rs 1.3 lakh crore in demand
This is an AI-generated image, used for representational purposes. The Indian government is drafting a fresh strategy to promote domestically-flagged ships, after its current Rs 1,624 crore scheme launched in FY22 has fallen short of its objectives. The scheme, which aimed to raise India's share of EXIM cargo carried by Indian ships, has not had the desired impact, with only Rs 330 crore disbursed so far and the share of Indian-flagged vessels still hovering around 8%, reported ET. To address this, the ministry of ports, shipping, and waterways (MoPSW) is holding inter-ministerial consultations with the petroleum, steel, and fertiliser ministries to assess sector-specific shipping needs. "This has resulted in demand for around 200 ships of 8.6 million Gross Tonnage (GT) worth around Rs 1.3 lakh crore which would be jointly owned by public sector companies and built in Indian shipyards over the next few years," MoPSW was quoted by ET. The new initiative aims to cater to the rising import needs of critical sectors like petroleum, steel and fertilisers. The effort comes as the share of Indian vessels in carrying India's EXIM trade has sharply dropped to 7.8% in FY19 from 40.7% in 1987-88. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top Public Speaking Course for Children Planet Spark Book Now Undo This has translated into an annual foreign exchange outgo of nearly $70 billion to overseas shipping lines. Under the existing subsidy scheme, Indian shipping companies were offered up to 15% incentive when bidding for global tenders floated by the government and its agencies. These tenders typically involved imports of crude oil, LPG, coal and fertilisers. However, experts say the scheme has failed to achieve scale or impact. Anil Devli, CEO of the Indian National Shipowners Association, pointed to structural disadvantages faced by Indian-flagged ships and said, 'Nothing has happened to reduce this burden of duties and taxes on Indian ships that impairs their competitiveness,' he was quoted as saying by ET. Operating costs for Indian vessels are estimated to be 20% higher than their foreign counterparts due to multiple factors, including higher debt costs, shorter loan terms, and taxation on wages of Indian seafarers. Additionally, Indian shipping firms face GST on vessel imports, lack of input tax credits, and differential GST for services within Indian ports, taxes that are not levied on foreign-flagged ships offering the same services. As per the shipping ministry, Indian ports handled 1,540.34 million metric tonnes (MMT) of cargo in 2023-24, a 7.5% increase year-on-year. However, the absence of a competitive Indian fleet continues to undermine the government's ambition of transforming the country into a maritime powerhouse. With the existing scheme unlikely to meet its FY26 goals, a review is expected soon, and the government may now shift its focus to long-term public-private fleet creation involving Indian-built ships to capture a larger share of global shipping. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
