Why ULIP mis-selling has become rampant ?
Why is there so much mis-selling of ULIP? How to avoid this mis-selling? Who should take ULIP?
Suryoday Small Finance Bank made a tepid listing on the stock exchanges today. Shares of the small finance bank opened at Rs 292 per share on the National Stock Exchange, Rs 13 lower than the issue price of Rs 305 marking a discount of 4.26%. On the BSE, it opened at Rs 293, at a discount of 3.93%.
The initial public offer of Suryoday Small Finance Bank was subscribed 2.37 times on the last day of subscription on March 19. The small finance bank issue received bids for 3,20,66,482 shares against 1,35,15,150 shares on offer, as per NSE data. The portion for qualified institutional buyers (QIBs) was subscribed 2.18 times, non-institutional investors 1.31 times and retail individual investors (RIIs) 3.09 times.
The Rs 582.33 crore IPO comprised of a fresh issue of Rs 248.58 crore and offer-for-sale (OFS) worth Rs 333.76 crore by promoters and existing shareholders. Proceeds from the fresh issue will be used towards augmenting the Bank’s Tier-1 capital base to meet the Bank’s future capital requirements.
Suryoday Small Finance Bank’s has gross bad loans totalled Rs 101.25 crore, which made for 2.79% of gross advances as of March last year, while net non-performing assets were at Rs20.37 crore, or 0.57% of net advances.
Bank’s net interest income stood at Rs 490.90 crore in FY2020 against Rs 340.37 crore FY2019. Net profit stood at Rs 111.20 crore in FY2020 versus Rs 90.40 crore last year. Advances for the period stood at Rs 3,531.94 crore from Rs 2,679.58 crore while deposits were at Rs 2,848.71 crore compared with Rs 1,593.42 crore a year ago.