Bilcare Limited launches new FD scheme, offers interest rate of

• Posted by Sindhuri G August 28, 2012 - Filed in Business - 2,106 views

  

  Interest on the fixed deposit will be paid quarterly, annually or on a cumulative basis.

  Bilcare Limited has launched fixed deposits for a time frame of one, two and three years respectively. The minimum amount of investment is Rs 20,000 and in multiples of Rs 1,000 thereafter. Pune-based Bilcare offers customer centric solutions for pharmaceutical packaging, card solutions, speciality film solutions and clinical trial supplies management. It has operations both in India as well as overseas through its branches and subsidiaries
  
  Product
  
  Interest on the fixed deposit will be paid quarterly, annually or on a cumulative basis. For a one year deposit you will get 11%, for two years 11.5% and for three years 12%. Senior citizens, shareholders and employees are eligible for a 0.25% extra interest. Premature withdrawal is possible after the completion of six months but you may have to pay a penalty of 2% on the original interest rate. You can choose to receive post dated interest warrants or interest payment through NECS.
  
  Why invest
  
  The interest rate of 12% pa is higher by 200-250 basis points than that offered by most banks. The company is profit making and dividend paying. It posted a net profit of Rs 74.75 crore for the year ended March 2012.
  
  Why not to invest
  
  Company fixed deposits are unsecured and illiquid. Interest income from company fixed deposits is taxable and for those in the highest tax bracket the post tax return works out to a mere 8.29%. As of June 2012, 95.3% of the promoter shareholding is pledged.