Hawkins Cookers Ltd. has announced Fixed deposit rates on Tuesday across three tenors of 13 months, 24 months and 36 months at 7.5%, 7.75% and 8%, respectively. Despite a rise in the central bank's benchmark interest rates in recent months, the rates have not changed from last year.
Depositors can choose between a half-yearly or cumulative interest payout, and the minimum deposit amount for all three terms is 25,000. In the cumulative option, interest is paid out at the end of the FD term, allowing it to compound monthly, as opposed to the half-yearly option, which pays interest twice a year. However, take note that TDS is subtracted from the total FD interest if it exceeds the 5,000 threshold in a fiscal year, as required by 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-month tenor) in 2019, to 9% in 2020 and 8% in 2021 and 2022.
It is still the highest rate 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.
On the company website starting on September 20, applications will be accepted on a first-come, first-served basis.
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