New India Co-operative Bank Barred by RBI: What Happens to Your Money?

The Reserve Bank of India (RBI) has imposed restrictions on New India Co-operative Bank due to liquidity issues. From February 13, 2025, the bank is prohibited from granting loans, renewing advances, accepting new deposits, or allowing withdrawals, safeguarding depositors.

Restrictions on New India Co-operative Bank to Safeguard Depositors’ Interests

The Reserve Bank of India (RBI) has placed New India Co-operative Bank, Mumbai, under restrictions, citing liquidity problems. As of March 2024, the bank holds deposits of ₹2,436 crore.

The RBI’s decision prohibits the bank from issuing new loans, renewing advances, or accepting fresh deposits, starting February 13, 2025. This move also restricts the bank from making investments, granting loans, or disbursing payments, in a bid to safeguard the interests of its depositors.

New India Co-operative Bank’s Liquidity Crisis

RBI’s intervention comes as concerns over the bank’s liquidity continue to grow, prompting a freeze on savings and current accounts.

Eligible depositors will be able to claim up to ₹5 lakh under the deposit insurance scheme. The RBI is closely monitoring the situation and will continue to review its restrictions, which will remain in place for six months.

New India Co-operative Bank Faces Financial Losses

New India Co-operative Bank has struggled with losses over the past two fiscal years. The bank reported a loss of ₹227.8 million for the year ending March 2024, following a loss of ₹307.5 million in fiscal 2023, as per news reports.

Its advances declined to ₹11.75 billion as of March 31, 2024, down from ₹13.30 billion the previous year, while its deposits increased slightly to ₹24.36 billion from ₹24.06 billion.

Conclusion

The RBI’s decision to impose restrictions on New India Co-operative Bank highlights the growing concerns over the bank’s financial stability and liquidity challenges. Despite a slight increase in deposits, the persistent losses and declining advances have raised alarms.

While depositors are assured of insurance coverage up to ₹5 lakh, the ongoing freeze on transactions and the six-month restriction period signal a critical period for the bank’s recovery. The RBI’s vigilant oversight will be crucial in determining the bank’s future course of action, with an emphasis on protecting depositors’ interests.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Closing Bell: Sensex Down 32 Points, Nifty Flat at 23,031 on February 13, 2025

On February 13, 2025, the BSE Sensex closed at 76,138.97, marking a decline of 32.11 points or 0.04%. Similarly, the Nifty 50 ended the day at 23,031.40, down by 13.85 points, reflecting a decrease of 0.06%.

The Nifty 50 opened at 23,055.75, reaching a high of 23,235.50 during the session, while the lowest point touched 22,992.20. This shows some intraday volatility, with the index fluctuating within a narrow range.

Market Momentum Falters Amid Global Uncertainty

The stock market showed early promise, fuelled by positive domestic inflation data, but the rally lost steam as global uncertainties and weak corporate earnings weighed on investor sentiment.

As a result, market participants are now focusing on the outcome of the Trump-Modi discussions, hoping for potential trade and tariff concessions that could spark a pullback rally.

Top Gainers and Losers

On the stock market today, Tata Steel emerged as one of the top gainers, rising by 3.12 points to close at 136.41, with a significant trading volume of 5,20,35,533 shares. Sun Pharma also saw a positive movement, gaining 3.02 points to end at 1745, with 27,50,339 shares traded.

On the flip side, Adani Enterprises was among the top losers, dropping by 4.93 points to close at 2237.45, while Adani Ports fell by 1.86 points, closing at 1107.9, with substantial volumes of 25,51,644 and 37,63,845 shares, respectively.

Sectoral Performance

The Nifty IT sector fell marginally by 1%, while the Nifty FMCG index declined by 0.8%. In contrast, the Nifty Healthcare Index saw a rise of 1.2%, indicating positive movement in the healthcare sector.

Oil Prices

As of February 13, 2025, at 04:05 PM, Brent Crude was trading at $74.18, down by 1.33%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

EMIs Drop for Home Loan Borrowers as PNB, Canara Bank Cut Repo Linked Lending Rates

The Reserve Bank of India’s 25 basis points repo rate cut to 6.25% has prompted banks like Canara Bank, PNB, and Union Bank to lower their repo-linked lending rates. This offers home loan borrowers the option to reduce their EMIs or shorten loan tenure, benefiting both new and existing borrowers.

Banking Giants Revise Repo Linked Lending Rates Post RBI Cut

Canara Bank has lowered its Repo Linked Lending Rates (RLLR) from 9.25% to 9%, applicable to new loans and accounts completing 3 years under the RLLR regime from February 12, 2025.

Similarly, Bank of India reduced its rate from 9.35% to 9.10% starting February 7, 2025.

Union Bank of India has brought its rate down to 9% from 9.25% as of February 11, 2025, while Punjab National Bank has adjusted its RLLR to 9% from 9.25% on February 10, 2025.

These rate cuts follow the RBI’s decision to lower the repo rate from 6.50% to 6.25%, bringing relief to borrowers.

Repo Linked Lending Rate Explained

Repo Linked Lending Rate (RLLR) refers to the interest rate at which banks lend to customers, determined by the repo rate set by the Reserve Bank of India (RBI).

RLLR is the interest rate directly tied to the repo rate, meaning that as the RBI adjusts its repo rate, the lending rates of banks also change accordingly.

Following an RBI directive in October 2019, banks were required to link their retail loans to external benchmark lending rates (E-BLR), with the repo rate becoming the primary benchmark for most financial institutions.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

PM Modi Visits US to Meet Donald Trump: Tariff, Trade and Immigration Issues on the Agenda

Prime Minister Narendra Modi’s visit to the US for a high-stakes meeting with President Donald Trump is set to focus on key issues impacting both nations.

From navigating trade negotiations amid the “America First” policy to addressing immigration concerns, the talks are expected to cover global issues like the Ukraine-Russia conflict and Israel-Gaza situation.

Check out what the likely agenda and expected outcomes will be from this important summit.

What PM Modi and President Trump Will Discuss?

  • Trade Negotiations

One of the key areas of focus during Prime Minister Modi’s meeting with President Trump will be trade negotiations. With both nations seeking to expand their economic ties, the discussions are expected to revolve around reducing trade barriers, addressing tariff concerns, and exploring opportunities for greater collaboration in sectors like technology, energy, and defence.

The “America First” trade policies, which have raised concerns in India, may be a point of contention, as both sides will aim to balance protectionist measures with promoting mutual economic growth.

  • Immigration Policies

Immigration policies are expected to be another crucial topic in the talks between Prime Minister Modi and President Trump.

With India being a significant source of immigrants to the US, particularly in the tech sector, Modi’s government is keen to address concerns regarding visa restrictions and immigration reform.

Trump’s administration has focused on limiting immigration, including issuing tighter regulations on work visas like H-1B, which has impacted Indian professionals. The discussions are likely to focus on finding a balance that protects US interests while ensuring fair opportunities for skilled Indian workers.

  • Global Security Issues

Global security issues are expected to feature prominently in the discussions between Prime Minister Modi and President Trump. With rising geopolitical tensions, particularly in regions like Ukraine and the Middle East, both leaders are likely to address how India and the US can collaborate to promote stability and peace.

The ongoing Russia-Ukraine conflict and the Israel-Gaza situation will likely dominate the talks, with both countries emphasising the need for diplomatic solutions and humanitarian support.

  • Technology and Investment Cooperation

Technology and investment cooperation will be a key pillar of the discussions between Prime Minister Modi and President Trump. Both nations recognise the growing importance of technological innovation and the role it plays in shaping the future economy.

Modi is expected to seek greater collaboration with the US on cutting-edge technologies such as artificial intelligence, cybersecurity, and clean energy. The two leaders are likely to discuss expanding bilateral investments, particularly in sectors like tech startups, digital infrastructure, and renewable energy, to drive economic growth and job creation.

Elon Musk to Meet PM Modi

As per news reports, Tesla and SpaceX CEO Elon Musk is set to meet Prime Minister Narendra Modi during his visit to the United States. This high-profile meeting is expected to focus on expanding India-US ties in the technology and innovation sectors.

With Musk’s business ventures having a significant impact globally, including in electric vehicles and space exploration, discussions could revolve around opportunities for collaboration, particularly in the Indian market.

Conclusion

In conclusion, Prime Minister Modi’s visit to the United States is poised to strengthen the India-US relationship across multiple critical areas, including trade, immigration, global security, and technology.

The discussions with President Trump will address both opportunities and challenges, with a clear focus on finding common ground in trade negotiations, ensuring fair immigration policies, and enhancing cooperation on global security issues. Additionally, the potential collaboration with industry leaders like Elon Musk signals the deepening of ties in innovation and sustainable technology.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Shriram Finance Shares in Focus; Raises $500 Million Through SACE ECB Loan

Shriram Finance Limited (SFL) has raised a groundbreaking $500 million loan through SACE, Italy’s export credit agency, marking a significant milestone for Indian NBFCs. The 10-year facility is aimed at financing Italian vehicles under SFL’s Social Finance Framework, highlighting the company’s global fundraising success.

Loan Details

On February 13, 2025, Shriram Finance Limited (SFL) announced the successful raising of a $500 million External Commercial Borrowing (ECB) loan, backed by SACE, marking a first for Indian non-banking financial companies (NBFCs).

This landmark facility will support the financing of both new and used Italian vehicles under the company’s Social Finance Framework.

The loan, a 10-year term facility, is structured to meet SFL’s strategy of enhancing sustainable funding sources.

It was arranged with the support of international financial institutions, including HSBC, Deutsche Bank, KfW IPEX-Bank, ING Bank, and J.P. Morgan, reinforcing confidence in SFL’s operational strength and creditworthiness.

About SACE

SACE, Italy’s Export Credit Agency, is a finance and insurance group directly controlled by the Ministry of the Economy and Finance. It focuses on supporting businesses and Italy’s economic system by offering a variety of tools and solutions that enhance competitiveness both domestically and internationally.

For the past 50 years, SACE has been a key partner for Italian exporters seeking growth in foreign markets. Additionally, it helps the banking sector with financial guarantees to improve access to credit, liquidity, and investment, contributing to Italy’s Green New Deal. SACE operates globally, with 14 offices located in key markets for Italian exports.

Share Price Performance

Shriram Finance Limited’s share price rose by 1.24% today, reaching ₹553.95 at 12:25 PM on the NSE, after opening at ₹547. The stock hit a high of ₹560.25 and a low of ₹538 during the session. The rise in the stock price added to yesterday’s gain of 1.6%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Jubilant Foodworks Share Price Rises 6%; Q3 FY25 Revenue up 56%

Jubilant Foodworks saw its share price rise 6%, ending a 5-session loss streak. The company reported an impressive 56% year-on-year increase in revenue for Q3 FY25, driving investor confidence.

Jubilant Foodworks Q3 FY25 Financial Highlights

Jubilant FoodWorks’ reported a 24.47% decline in consolidated net profit from continuing operations, which stood at ₹496.31 crore for Q3 FY25, down from ₹657.09 crore in the same period last year.

However, the company’s revenue from operations saw a significant 56.07% year-on-year increase, reaching ₹2,150.76 crore. Profit before tax (PBT) dropped 14.61% to ₹733.01 crore compared to ₹858.40 crore in Q3 FY24.

EBITDA rose by 43.5% to ₹402 crore, though EBITDA margin declined by 163 basis points to 18.7%. In the India segment, revenue grew 18.9% to ₹161.1 crore, driven by an 18.3% increase in Domino’s India sales.

Strong Growth in Domino’s Operations

Domino’s like-for-like (LFL) sales grew by 12.5%, with delivery LFL at 24.7%, and order growth reaching 33.8%. The company added 67 net stores, bringing the total to 2,266 stores across 466 cities.

In the international segment, DP Eurasia’s system sales in Turkey, Azerbaijan, and Georgia amounted to ₹754.4 crore, with revenue from operations rising 9.5% quarter-on-quarter to ₹504.4 crore, setting a new peak.

Share Price Performance

Jubilant FoodWorks Limited’s share price experienced a significant rally today, rising by ₹43.40 or 6.77%, reaching a high of ₹688.00. The stock opened at ₹640, and during the session, it recorded a low of ₹640.00 before climbing to its peak. Despite today’s strong rally, the stock has dropped nearly 12.5% over the last five sessions.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Reliance Industries Shares in Focus; Forms New Wholly Owned arm in Singapore for Energy Initiatives

Reliance Industries (RIL) has set up a wholly owned subsidiary, REC Sustainable Energy Solutions Pte. Ltd, in Singapore to bolster R&D and new energy projects, the company said in a press release on the stock exchanges.

Details on Reliance’s New Subsidiary

Reliance Industries Limited (RIL) has announced the establishment of REC Sustainable Energy Solutions Pte. Ltd. (REC SES), a wholly owned subsidiary in Singapore.

This move aims to create a global capability centre for research and development (R&D), facilitate the recruitment of global talent, and provide technical and procurement services to support the company’s new energy ventures.

The company has committed an initial investment of USD 100,000 towards the subscription of 100,000 shares at USD 1 each. The transaction does not involve related party interests, and no regulatory approvals were required.

RIL’s Q3 FY25

Reliance Industries reported a consolidated net profit of ₹18,540 crore for Q3 FY25, reflecting a 7.4% increase from ₹17,265 crore in the same quarter last year. The company’s consolidated revenue for Q3FY25 rose by 6.7% year-on-year (YoY) to ₹2.40 lakh crore, up from ₹2.25 lakh crore in Q3FY24.

Operationally, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 8%, reaching ₹43,789 crore compared to ₹40,656 crore YoY. The EBITDA margin also improved by 20 basis points to 18.3% from 18.1% in the same period last year, driven by stronger refining margins and growth in digital services.

Share Price Performance

Reliance Industries Limited (RIL) shares have shown a modest increase, with the stock trading at ₹1,221.80, up by ₹5.25 or 0.43% from the previous close. The stock reached a high of ₹1,224.00 during the session, while the low stood at ₹1,212.15.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

SAIL Share Price Resumes Uptrend After Two-Day Dip; Trump Tariff Concerns Persist

Steel Authority of India Limited (NSE: SAIL) shares are trading at ₹109.74 at 10:15 AM, showing an increase of ₹3.99 or 3.77% from the previous close of ₹105.75. The stock opened at ₹105.38 and reached a high of ₹110.00, while the low for the day was ₹104.95.

This recovery comes after the stock ended two consecutive sessions of losses, during which it recorded a decline of nearly 9.5%.

Metal Stocks Came Under Pressure Amid Trump’s Tariff Announcement

On Monday, US President Donald Trump significantly increased tariffs on steel and aluminum imports to a flat 25%, with no exceptions or exemptions.

This move is intended to support struggling US industries but also carries the potential to trigger a trade war on multiple fronts.

Metal stocks such as Vedanta, Hindalco, and Tata Steel came under pressure, recording declines of 2%-3%.

SAIL Hikes Capital Expenditure to Fuel Progress

The Minister of State for Steel and Heavy Industries, announced in the Lok Sabha on Tuesday that Steel Authority of India Limited (SAIL) will raise its capital expenditure (Capex) to ₹7,500 crore for the fiscal year 2025-26, up from ₹5,700 crore in 2024-25.

This increase will cover SAIL’s share of joint venture investments, capital repairs and spares, payments for ongoing schemes, and expenditures for completed projects.

SAIL’s Q3 FY25 Financial Performance

Steel Authority of India Ltd (SAIL) reported a significant 62% drop in its net profit for the third quarter ended December 31, 2024, falling short of market expectations.

The company’s standalone profit stood at ₹126 crore, compared to ₹331 crore in the same period last year, according to an exchange filing. The decline in profits marks a challenging quarter for the steel manufacturing giant, reflecting pressures on its bottom line amid a volatile market environment.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Bharat Forge Shares in Focus; Partners with Liebherr and VEDA to Enhance Aerospace, Defence Sector

Bharat Forge forms strategic partnerships with Liebherr to set up a cutting-edge aerospace manufacturing facility and with VEDA Aeronautics to develop unmanned systems for India’s defence sector, enhancing national self-reliance.

Bharat Forge Partners with Liebherr for Aerospace Facility in Pune

Bharat Forge Ltd has announced two significant collaborations to strengthen its aerospace and defence portfolio.

First, in partnership with Liebherr-Aerospace & Transportation SAS, Bharat Forge is setting up a state-of-the-art aerospace manufacturing facility in Pune, India, which will feature advanced technologies like a ring mill for landing gear components and raw material processing.

This collaboration marks a major step toward addressing the global aerospace industry’s growing demands.

 

Bharat Forge Joins VEDA to Develop UAVs and Boost Defence Capabilities

On the defence front, Bharat Forge has entered into a Memorandum of Understanding (MoU) with VEDA Aeronautics (P) Ltd to develop Unmanned Aerial Vehicles (UAVs) and other high-speed aerial weapon systems.

Bharat Forge will supply micro jet engines for these systems, contributing to India’s defence self-reliance and technological innovation.

The MoU aligns with Bharat Forge’s commitment to Atmanirbhar Bharat and strengthening India’s defence capabilities with indigenously developed technologies.

These collaborations highlight Bharat Forge’s commitment to driving innovation in both the aerospace and defence sectors, as well as its dedication to meeting the evolving demands of global and Indian markets.

Share Price Performance

Bharat Forge Limited’s share price traded at ₹1,069.60 at 9:55 AM on the NSE, reflecting a decline of ₹35.05 or 3.17% from the previous close of ₹1,104.65. The stock opened at ₹1,075 and reached a high of ₹1,085 during the trading session, while the low for the day was ₹1,044.70.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Equity Mutual Fund Inflows Slip 4% in Jan 2025; Check AUM and Redemption Trends

As per the AMFI data release yesterday, equity mutual fund inflows saw a marginal decline of 4%, dropping to ₹39,687 crore in January 2025. This dip reflects the impact of market volatility, with the Nifty 50 index registering a slight decline during the month.

Check out the updated numbers for mutual fund portfolios, AUM, and more for equity mutual funds below to get a detailed overview of the latest trends and performance.

Number of Mutual Fund Schemes in January 2025

The number of schemes under Growth/Equity Oriented funds saw a modest increase from December 2024 to January 2025. In December, there were 494 schemes, which increased to 499 in January, representing a growth of just over 1%.

This indicates that the market for equity-oriented funds is slowly expanding, though at a pace that may suggest a cautious approach.

What Was the Growth in the Number of Folios in January 2025?

The number of folios, which reflect the individual investor accounts in these schemes, rose from 15.75 crore in December to 16.06 crore in January.

This represents an increase of 1.96%. The steady growth in the number of folios signifies that more investors are continuing to invest in these schemes, potentially indicating a consistent interest in equity-oriented investments.

The increase in folios, while modest, shows positive investor engagement in these funds.

Funds Mobilised in Equity-Oriented Schemes Decrease in January 2025?

Funds mobilised, representing the new investments made in these equity-oriented schemes, saw a notable decrease. In December 2024, the total mobilised funds amounted to ₹72,115.94 crore, but this dropped to ₹66,630.08 crore in January 2025, marking a decline of approximately 7.56%.

This reduction could indicate a slight downturn in investor confidence or a shift in investment preferences during this period, as fewer new investments were made compared to the previous month.

Equity Mutual Fund Repurchase/Redemption in January 2025

Repurchase or redemption of units, indicating how much investors withdrew from these funds, also saw a decline. The value stood at ₹30,960.02 crore in December but dropped to ₹26,942.30 crore in January, reflecting a decrease of 13.03%.

This reduction suggests that fewer investors decided to redeem their investments during January, which may point to a stabilising investor sentiment or a pause in withdrawals.

Equity Mutual Fund Net Assets Under Management (AUM)

The total assets under management (AUM), which reflect the total market value of all investments in these funds, saw a decline from ₹30,57,548.59 crore in December to ₹29,46,764.20 crore in January, marking a 3.63% decrease.

This decline suggests that the overall market value of these funds decreased, potentially due to lower new investments, weak market performance during the month.

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.