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Retirement Income Stream: Small Savings Scheme

Retirement Income Stream: Small Savings Scheme
by 5paisa Research Team 22/10/2021

Attraction of Small Savings Schemes lies in many factors such as returns linked with the yields of government securities, instruments under these schemes provide fixed returns along with the safety of investors' capital.

The process of retirement planning is an essential aspect of every individual’s life, as it decides what type of standard of living you will have during your sunset years. The process of retirement planning undertaken by an individual will result in a benefit at a later stage of life.

In this article, we will look at various small savings schemes available, where an investor can invest for his retirement.

Small savings schemes are designed to provide safe and attractive investment options for an individual. These schemes are operated through a large number of post offices and public sector banks spread throughout the country. They have been a great mode of savings for many people. Even high net worth individuals dedicate some proportion of their portfolio towards these schemes in order to have stability in their portfolio.

What are the investment instruments available under the small savings scheme? 

  • Post Office Time Deposits: The post office time deposit is similar to normal fixed deposits banks offer, where you save money for a definite time period, earning a guaranteed return through the tenure of the deposit. The objective of this savings scheme is to protect the capital of an investor. In case of the unfortunate demise of the investor, the account can be continued or closed. If closed, interest is paid as if the account was closed prematurely. The current rates compounded quarterly but paid annually or at maturity, are mentioned below.


Rate of interest  

1-Year Time Deposit  


2-Year Time Deposit  


3-Year Time Deposit  


5-Year Time Deposit   


  • Post Office Monthly Income Scheme (POMIS): The Post Office Monthly Income Scheme (MIS) is a low-risk investment scheme offering steady income and, hence, is suited for conservative investors and senior citizens. This scheme is government-backed, which is why its the safest investment instrument. It is one of the small savings investment schemes wherein you can start investing with a minimal amount of Rs 1000. The prevailing rate of interest on POMIS is 6.6% compounded monthly.

  • National Savings Certificate (NSC): NSC is the only scheme wherein not only the initial deposit but also the interest for the four years, out of its term of five years, and also enjoys the deduction u/s80C. There is no upper limit on the amount of investment. The certificates are available in the denominations of Rs 100, Rs 500, Rs 1,000 and Rs 10,000. The prevailing interest rate of NSC is 6.8% compounded annually.

  • Kisan Vikas Patra (KVP): Any Indian citizen above 18 years can purchase KVP. Minimum investment id Rs 1,000 and there is no upper limit specified. The deposit shall mature on the maturity period prescribed by the Ministry of Finance from time to time as applicable on the date of deposit. Any number of accounts can be opened under the scheme. The prevailing interest rate of the scheme is 6.9% compounded annually.

  • Public Provident Fund (PPF): The PPF account can be operated by any individual, either on his own behalf or on behalf of a minor of whom he is the guardian or on behalf of Hindu Undivided Family (HUF). The minimum annual investment required is only Rs 500 per annum, giving the investor freedom to invest as per his discretion and available resources. The maximum annual limit of investment is Rs 1,50,000 per annum. An investor has to at least invest a minimum amount every year in his account in order to keep the PPF account active. PPF have a lock-in period of 15 years. On maturity, the investor has the option of withdrawing the proceeds and close the account or extend the account for a block of five years or continue without contribution. The prevailing interest of this scheme is 7.1% compounded annually.

Final Thoughts

An individual should assess their investment requirement and investment horizon and then further decide to invest in these schemes as they offer a variety of options along with different benefits.

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TVS Motors soars 7% on the back of strong Q2 results

TVS Motors soars 7% on the back of strong Q2 results
by 5paisa Research Team 22/10/2021

Plans for investment in EV space lift shareholders’ spirits

On the contrary to the Sensex movement, TVS Motors was trading up and high, driven by the exceptional rise in quarterly results of September 2021. The net sales for Q2 were up by 38% on a sequential basis to Rs 6,483 crore. The EBITDA too witnessed a QoQ jump of 78% to Rs 740 crore. The net profit rose to Rs 233 crore while in the previous quarter it had suffered a net loss of Rs 15 crore. The stock has been the buzzing stock of the day due to its rewarding jump today.

The stock price movement hasn’t been impressive for the last six months. In fact, the stock was trading at the level of around Rs 615 at the beginning of May, as it has been trading around similar levels as of October 22, 2021.

In the Q2 of FY22, it witnessed a 4% YoY growth in sales of two-wheelers of 8.7 lakh units against 8.34 lakh units sold in Q2FY21. The three-wheeler segment grew by 41% in sales volume with sales of 0.47 lakh in the current quarter against 0.33 lakh in Q2FY22. The management expects a further rise in sales especially in the domestic two-wheeler segment with the upcoming festive season. Considering potential growth in EV space, the company is planning to invest about Rs 1000 crore in EV space by incorporating a new wholly-owned subsidiary.

TVS Motor Company is the third-largest two-wheeler manufacturing company in India. Some of the popular products include TVS Jupiter in scooters, TVS Star in motorcycles and TVS King in three-wheelers.

On October 22, 2021, the stock was trending and trading at Rs 617.50, up by 7.15% as of 1:05 pm on the BSE. The stock has a 52-week high of Rs 665.70 and a 52-week low of Rs 407.25.

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Yes Bank Q2 profit surges 74% on lower provisions but net interest income drops

by 5paisa Research Team 22/10/2021

Private-sector lender Yes Bank reported a 74% surge in net profit for the second quarter as provisions for possible loan losses dropped and asset quality slightly improved.

However, the bank’s shares fell as much as 3.9% likely because net interest income decreased.

Net profit for the July-September quarter came in at Rs 225 crore, up from Rs 129 crore a year earlier. Profit was 9.5% higher than Rs 207 crore in the April-June period.

Analysts had widely differed on the bank’s profit projections. While Elara Capital had estimated a profit of Rs 257 crore, Nirmal Bang Institutional Equities had forecast a loss. The average of estimates from analysts polled by Bloomberg was for a profit of Rs 119.3 crore.

The bank’s net interest income dropped 23% to Rs 1,512 crore from Rs 1,973 crore a year earlier. NII was up 8% sequentially from Rs 1,402 crore in the April-June period.

The lender’s shares fell after the results were announced. The shares were down 4.1% at Rs 13.73 apiece in late afternoon trade.

Yes Bank Q2: Other highlights

1) Net interest margin for Q2 was 2.2% compared with 2.1% last quarter.

2) Non-interest income for Q2 climbs 30% to Rs 778 crore.

3) Operating profit falls 46% year-on-year to Rs 678 crore.

4) Net advances at Rs 172,839 crore, up 3.5% from a year earlier and 5.6% sequentially.

5) Total deposits at Rs 176,672 crore, up 30% from a year earlier and 8% sequentially.

6) Gross NPA ratio falls to 15.0% versus 16.9% a year earlier and 15.6% last quarter

7) Net NPA ratio falls to 5.5% versus 5.8% last quarter but rises from 4.7% a year earlier.

8) Provisions decline 65% to Rs 377 crore from Rs 1,078 crore a year earlier.

Yes Bank operating performance

The bank said its core operating profit rose 38% sequentially thanks to wider net interest margins and continued traction in retail and transaction banking fees.

The bank, which was rescued by the Reserve Bank of India last year, made prudent provisioning of Rs 336 crore on a single telecom exposure. It also said that its resolution momentum continues with Rs 987 crore of cash recoveries and Rs 969 crore of upgrades in the second quarter.

The granularity of its loan book is improving, too. Retail loans now account for 54% of its book while corporate loans make up 46%. Its CASA ratio, which indicates the proportion of current and saving accounts, rose 200 basis points sequentially to 29.4%.

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Are PSU Banks on the cusp of change?

Are PSU Banks on the cusp of change?
by 5paisa Research Team 22/10/2021

PSU Banks are up by 20% in the last thirty days. They have outperformed Nifty Bank by a huge margin. Are they going to sustain this outperformance?

One of the trends that is quite visible in the last few days of trading is that banking stocks are outperforming the overall market. Even within banks, state-owned banks are showing better resilience. Banks like Indian Bank and Union Bank are up by 40% in the last thirty days. In the same period, the best performing bank from the private sector has been Federal Bank, whose share price is up by 20%. This better performance in the last one month has helped the PSB stocks to lift last one-year performance also. They are up by 114% in the last year compared to 63.5% by Bank Nifty.

Performance of PSU Banks in last one year and one month.


52week High  

52week Low  

365 day % Change  

30 day % Change  


























Punjab & Sind Bank  













































What is driving the banking sector as a whole is their underperformance for a while and good quarterly results. For example, the Bank of Maharashtra saw its profit double in the latest quarter on yearly basis. Besides its asset quality has also improved significantly. There are many cases that are not being resolved such as DHFL, which is helping such bank. Hence, PSBs are likely to continue their superior performance.

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Multiplex chains PVR, Inox see some revenue pickup but remain in the red

by 5paisa Research Team 22/10/2021

Two publicly listed movie theatre chains—PVR and Inox Leisure—declared quarterly results on Friday, reflecting a pickup in activity albeit way behind levels in the pre-pandemic era.

The results show also that, even though key states including Maharashtra have now allowed theatres to open, it would take time for the companies to get back on track

The current quarter ending December is usually the best period for multiplexes because of various festivals and holidays that also enable movie producers to schedule their big releases during this period.

PVR stock ended 1.4% down, off the 52-week high it touched earlier this week. Inox Leisure closed 0.2% higher, falling off its one-year high earlier in the day.


PVR, the largest multiplex chain operator in the country, reported a sharp rise in revenues for the second quarter but it remained in the red even though it managed to bring down its losses.

PVR reported a consolidated net loss of Rs 153.3 crore for the July-September quarter compared with Rs 184.1 crore in the same period last year.

Consolidated revenue more than doubled to Rs 275.2 crore from Rs 110.6 crore in the year-ago period. In the pre-pandemic era, it had revenue of nearly Rs 1,000 crore in the quarter ended September 2019.

The company reported EBITDA of Rs 86.7 crore for the quarter compared with an operating loss of Rs 14 crore a year ago.

PVR’s key highlights

1) Cinema halls reopened from July 30. PVR is now permitted to operate all its screens across India and Sri Lanka.

2) But there are continuing restrictions around capacity caps, timing of operations and vaccination requirements.

3) Telangana, Rajasthan, Karnataka, Andhra Pradesh, Punjab and Gujarat have relaxed capacity restrictions.

4) PVR concluded talks with landlord partners for rental waivers or discounts in respect of about 80% of its properties and achieved savings of 75% in Q2.

5) PVR launched 13 new screens during the period in Mumbai, Gurgaon and Jamnagar. It also re-launched the revamped Priya cinema and PVR Anupam in Delhi during the quarter.

Management Speak

Ajay Bijli, Chairman and Managing Director at PVR, said the company’s priority during the quarter was reopening its cinemas with all the safety guidelines in place so that movie goers could return.

“Looking at the sharp recovery in consumer demand evidenced by box office collections of regional and Hollywood movies during the past two months we are absolutely confident that the strong content line up that is slated for release over the next few quarters will ensure that the business will bounce back sharply,” Bijli said.

Inox Leisure

Inox was hit even harder last year with operational revenue in the quarter ended September 2020 virtually disappearing at just Rs 36 lakh. It has bounced back this year, recording sales of Rs 47.4 crore last quarter.

On a sequential basis, revenue was twice the number of the quarter ended June but a far cry from July-September 2019 when it was over Rs 500 crore.

Its EBITDA loss almost doubled to Rs 60 crore in the same period and net loss widened from Rs 67.8 crore last year to Rs 87.6 crore in the three months ended September 30.

Inox added two cinemas and six screens (all in Jaipur) last quarter. It has 658 screens and is now allowed to operate with 64% occupancy across the country. The firm saw 10% occupancy rate last quarter.

The company said it has renegotiated rent for around 86% of the properties.

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These stocks are likely to be in focus on October 25

These stocks are likely to be in focus on October 25
by 5paisa Research Team 22/10/2021

On Friday, the benchmark indices faded the early gains and ended in negative territory for the fourth straight session. mostly dragged by IT and healthcare names.

At close, the Sensex was down 101.88 points or 0.17% at 60,821.62 level, and the Nifty was down 63.20 points or 0.35% at the 18,114.90 level.

On the sectoral front, except for realty, all the other indices ended in the red. BSE Realty Index outperformed the markets by rising 2.45% on an intraday basis. Brigade Enterprises, Prestige Estates Projects, Godrej Properties and Oberoi Realty were the top-performing stocks within the index.

The broader market indices, BSE Smallcap index and BSE Midcap index, underperformed the benchmark indices by declining 1.09% and 1.18% each.

Watch out for these stocks for in the Monday trading session: 

Kajaria Ceramics - The Board of Directors of the company have approved investments up to Rs 5 crore by way of opening office(s) and/or a wholly-owned subsidiary company of the company in UAE. The proposed wholly-owned subsidiary company may be incorporated in UAE., to market the tiles/sanitaryware/faucet/plywood/laminates in UAE, and/or may also in other international markets. The stock traded 1.23% down in Friday’s trading session and is likely to be in focus on Monday.

PVR - The company announced the quarterly results for the quarter ended September 30, 2021. For the quarter ended September 30, 2021, consolidated Revenue, EBITDA and PAT stood at Rs. 275.2 crore, Rs 86.7 crore and Rs (153.3) crore respectively as compared to Rs 110.6 crore, Rs (14) crore and Rs (184.1) crore for the corresponding quarter last year. During the quarter as the screens re-opened, the company continued with its strategy for keeping operating costs low and maintaining adequate liquidity. The company launched 13 new screens during the year.

52-week high stocks – On Friday, the stocks of HDFC Bank, ICICI Bank, SBI and Kotak Mahindra Bank in the Sensex pack outperformed the index and made fresh 52-week highs. These stocks are likely to be on the watchlist for Monday’s trading session.

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