Hawkins Cookers Ltd on Tuesday announced fixed deposit (FD) rates across three tenors of 13 months, 24 months and 36 months at 7.5%, 7.75%and 8%, respectively. The rates have remained unchanged from last year despite a hike in key rates by the central bank in the past few months.
Minimum deposit amount across the three terms in ₹25,000 and depositors will have the option to opt for either half-yearly or cumulative interest payout. In the half-yearly option, interest is paid out twice in a year, whereas interest in the cumulative option is paid out at the end of the FD term, allowing the interest to compound monthly. However, note that TDS is deducted on the cumulative FD interest as well if the interest on the FD crosses the ₹5,000 threshold in a financial year, as specified by the tax laws.
Hawkins Cookers FD is rated AA- (stable) by Icra, unchanged from last year. The interest rates on Hawkins Cookers FD has gradually declined over the last few years from 10.5% (on 36-months tenor) in 2019, to 9% in 2020 and 8% in 2021 and 2022.
Even though the company has not raised its FD rates this year in tandem with the rate hike, it’s among the highest rates among corporate FDs of similar credit rating. Compared to rates offered by banks, Hawkins Cookers FD rates are 225-300 basis points (1 basis point is 1/100th of 1 percentage point) higher.
Hawkins Cookers Ltd said it has FDs worth ₹38.11 crore on its books as on 4 August 2022 from 1,119 depositors and it can raise additional ₹25.39 crore from general public and its shareholders. It registered profit after tax of ₹83.89 in financial year 2021-22, up from ₹80.64 in financial year 2020-21 and ₹72.49 in financial year 2019-20.
Applications will open on 20 September on the company’s website and will be considered on a first-come-first-served basis.
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