Here are the top personal finance news of the day:
Eating out can now become cheaper. Oil marketing companies have reduced prices of commercial LPG gas cylinders by 83.50 rupees. The reduction in prices of commercial cylinders will help hotels and restaurants reduce prices of food and beverages. This will lessen the burden on the common man’s pocket in this era of high inflation. The new rates have come into effect from June 1. However, there has been no change in prices of domestic gas cylinders. The price of a domestic LPG cylinder in Delhi is still 1,103 rupees. While, a 19 kg commercial LPG cylinder will now cost 1,773 rupees in Delhi.
Coal India stock available at Rs 5 discount
Stocks of country’s largest coal producer, Coal India, are still available at over 2% discount after close of first day of its 4,000 crore rupees OFS. The floor price is 225 rupees. On Thursday, the stock closed at 230 rupees per share. This means the stock is still available at 5 rupees discount to its current market price. Thursday was the first day of 2-day OFS. Only institutional investors were allowed to apply on the first day. But, retail investors can apply on Friday. The government is slated to shed 3% stake in the company.
SEBI orders Karvy to return money
SEBI has ordered the brokerage, Karvy Stock Broking, to return money of its customers in a swift manner. SEBI has ordered deregistration of the brokerage on condition that it will fully refund money of those investors who had opened demat accounts. Only then the deregistration process of the brokerage would be considered complete. Karvy Stock Broking was found to transfer unsued money lying in demat accounts of investors to its parent company’s account and raise capital against these deposits. So, SEBI had banned the brokerage from opening any fresh demat accounts. After imposing a ban on Karvy Stock Broking’s business, SEBI had transferred the investor’s demat accounts to two of stock broking firms — IIIFL and Axis Securities. However, these were those accounts in which no funds diversion had taken place. And now SEBI has come out with a decision for those investors who were actually the victims of this scam. Now, even those investors will get back their money.
ICRA pegs IT sector’s FY24 revenue growth in single digits
If you invest in IT sector, then, this news is for you. Domestic rating agency Icra has said that revenue growth of IT companies will slow down further to mid-single digits in the ongoing fiscal year. Moreover, companies are expected to keep employee addition at “low levels” in the near term. Net addition was anyway negative in the last two-quarters of FY23. However, the rating agency has retained stable outlook for the sector. IT sector has been under pressure off-late. Hiring and revenue growth rate both had fallen in the fiscal which had just gone pass by.
E2Ws become costlier
Most auto companies have announced an increase in prices of electric 2-wheelers as subsidy on these vehicles has seen a reduction with New FAME structure kicking in from June 1. Prices of electric 2-wheelers have been hiked in the range of 10,000-22,000 rupees. So far, Ola, TVS, Ather and Matter have announced price hikes. Ola S1 and S1 Pro have become costlier by at least 15,000 rupees. Ex-showroom price of Ola S1 scooter will now start from 1.3 lakh rupees. While, customers will have to pay 1.4 lakh rupees for S1 Pro. TVS iQube has become costlier by up to 22,000 rupees. While, earlier they were required pay on road price of 1.06 lakh rupees on TVS iQube. But now it will cost more.
You may get surprised when you book your next flight ticket!
Flyers can finally get relief from skyrocketing flight ticket prices. Jet fuel prices have been cut by more than 6000 rupees per kilo litres. This has taken the reduction to 23,000 rupees per kilo litre in last three months. Jet fuel prices have come down below 90,000 rupees per kilo letter in the national capital. Airlines can in turn reduce ticket prices in the country. However, the fuel retailers haven’t given any relief on fuel prices. Petrol and diesel prices have not been reduced for the last 14 months. Currently, petrol is being retailed at 96.72 rupees per litre and diesel at 89.62 rupees per litre in the national capital.
Big blow to ICICI Bank customers
Big blow to those who have taken loan from ICICI Bank. Those who have their ongoing loan with the private lender will have to pay more EMIs as the lender has hiked lending rates on consumer loans. Now, customers will have to pay more EMIs on consumer loans like home loans, auto loans and personal loans.
The private bank has hiked its one year marginal cost of funds based lending rates or mclr to 8.85%. The interest rates on various types of loans are tied up with 1 year MCLR of banks. With the private lender raising its 1 year MCLR, various types of consumer loans will become costlier.
PNB customers also not spared
Well, not only ICICI Bank, even, customers of Punjab National Bank will have to pay higher EMIs as the public lender too increased lending rates. The state owned bank has increased one year MCLR to 8.60%. Now, customers will have to pay higher EMIs on consumer loans running with PNB. As the interest rates on various types of loans are tied up with 1 year MCLR of banks. Various types of loans like home loans, auto and personal loans with Punjab National Bank are set to become costlier.
GDP growth rate set to fall for second straight fiscal in FY24
According to Chief Economic Adviser, V Anantha Nageswaran, India’s GDP may fall for second straight fiscal in FY24. He expects the country to clock GDP growth rate of 6.5% in the ongoing fiscal. On Wednesday, the nation reported GDP growth of 7.2% for the fiscal which just gone passed by. Before that in FY22, GDP was 9.1%. Continuous fall in growth rate of gross domestic product may lead to low consumption and investment level. This may in turn lead to lower employment creation.
