Home / Money / Personal Finance /  Hawkins Cookers offers up to 8% on FD, unchanged from last year

Hawkins Cookers Ltd has announced its Fixed Deposit (FD) scheme scheduled to be launched on 20 September. The company has announced 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 the last year despite RBI hiking the repo rate by 140 basis points (bps) in the past few months, which has forced banks and NBFCs to raise their deposit rates.

Minimum deposit amount across the three terms is 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 a year, whereas interest in the cumulative option is paid out at the end of the FD term, allowing the interest to compound monthly that can yield up to 8.3% annually. However, note that TDS is deducted on the cumulative FD interest as well if the interest on the FD crosses the 5,000 threshold ( 40,000 for bank FDs) in a financial year, as specified by the tax laws.

 

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Hawkins Cookers FD is rated AA- (stable) by ICRA. The interest rates on the company’s FD has gradually declined over the last few years, in line with fall in key lending rates, 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 (see table). Compared to banks, Hawkins Cookers FD rates are 125-250 bps (1 bps is 1/100th of 1 percentage point) higher.

Hawkins Cookers Ltd registered profit after tax of 83.89 in FY 2021-22, up from 80.64 in FY 2020-21 and 72.49 in FY 2019-20.

It holds 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.

Applications will open on the company’s website and will be considered on a first-come-first-served basis.

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