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  Navneet Singal Aug 13 ,2023

 Published In :  EvoBreyta

Applicability of withholding tax on Import of Goods

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Banking/Finance-Industry-Economic Times

Rise in delinquencies: Banks buckle up, go slow on issuing new credit cards

Banks have slowed down credit card issuances due to increasing defaults among customers. The Reserve Bank of India reported a significant decline in new card additions from August to September. Experts warn that this cautious approach may continue as lenders are wary of rising delinquencies and new regulatory measures affecting unsecured loans.

Published on: November 1, 2024


Karur Vysya Bank strengthens retail footprint in Tamil Nadu and Karnataka

Karur Vysya Bank expands its retail presence with four new branches in Tamil Nadu and Karnataka, increasing its total network to 848 branches. The bank reported a total business of Rs 1,76,138 crore as of September 30, 2024, with a net profit of Rs 932 crore and a low Net NPA of 0.28%.

Published on: November 1, 2024


Punjab & Sind Bank launches e-Bank Guarantee facility

Punjab & Sind Bank has collaborated with National e-Governance Services Ltd (NeSL) to introduce an e-Bank Guarantee (e-BG) facility. This new system replaces traditional paper-based BGs with e-stamping and e-signatures, enhancing security and transparency, thus saving time and reducing fraud. The initiative aims to improve ease of business for all parties involved.

Published on: November 1, 2024


PSU banks and financial institutions monetise Rs 4.5 cr through scrap disposal

Public sector banks and financial institutions earned Rs 4.5 crore from scrap disposal in a month-long campaign focused on minimizing pendency and promoting cleanliness. Over 11.79 lakh square feet of space was freed, and 1.45 lakh pensioners were contacted. Additionally, 79.97 lakh dormant accounts were activated, and LIC settled policies worth over Rs 10,742 crore.

Published on: November 1, 2024


HSBC, Barclays and StanChart jostle for US banking riches, unruffled by White House race

BRITAIN-BANKS/USA (PIX)HSBC, Barclays and StanChart jostle for US banking riches, unruffled by White House race

Published on: November 1, 2024


Partha Pratim Sengupta takes the driver seat at Bandhan Bank

Partha Pratim Sengupta has assumed the role of MD & CEO at Bandhan Bank, following RBI approval. With four decades of experience, his focus will be on stabilizing asset quality in the microfinance portfolio and consolidating retail lending. The bank's recent quarter saw a hike in non-performing assets due to increased microfinance sector stress.

Published on: November 1, 2024


Centrum may soon finalise sale of its home finance arm

Centrum Group aims to finalize the sale of its housing finance arm by fiscal end, with options ranging from a full sale to partial stake sale. Centrum Housing Finance, holding assets worth ₹1,500 crore, is negotiating for around ₹1,300 crore valuation with multiple investors.

Published on: November 1, 2024


Banks seek a ticket to RBI's LRS server

Banks have requested the Reserve Bank of India to integrate with its Centralised Information Management System for real-time limit verification under the Liberal Remittance Scheme, aiming to fast-track international credit card spending inclusion and ensure seamless tax collection compliance.

Published on: November 1, 2024


L&T eyes aerospace expansion to ride India's $44 billion private space market push

Larsen & Toubro is expanding its aerospace division to strengthen its role in India's growing private space sector. This follows the government's effort to open the industry to private firms. The company plans to leverage its long-standing relationship with ISRO for manufacturing launch vehicles and aims to tap into the future demand for commercial satellite launches.

Published on: November 1, 2024


Bank lending rates dip sequentially, while deposit rates rise

Bank lending rates marginally declined in September 2024, with the average rate on new rupee loans at 9.37%. Deposit rates increased during the same period, with fresh term deposits averaging 6.54%. Public sector banks experienced a higher rise in lending and deposit rates compared to private banks.

Published on: October 31, 2024


Bank lending to retail and services reined in

Credit growth slowed to 14.4 per cent in September 2024 from 15.3 per cent a year ago. Services sector lending decreased significantly. Retail loan growth also moderated, though housing loans saw increased growth. Industrial credit growth improved to 9.1 per cent. Credit to agriculture remained almost flat. This is according to the latest RBI data.

Published on: October 31, 2024


Indian banks' loan growth moderates in September amid cenbank clampdown, data shows

In September, Indian banks saw a year-on-year loan growth of 14.4%, down from 15.3% in the same month last year, excluding HDFC Bank's merger impact. The Reserve Bank of India's measures to curb retail lending exuberance led to slower loan growth, especially in personal and credit card loans.

Published on: October 31, 2024


LCR buffers high at most banks, may dip once new rules kick in

Banks in India have built high liquidity coverage ratio buffers anticipating stricter RBI norms. Most banks exceed the 100% LCR requirement, with private banks holding up to 136%. The new guidelines might reduce LCR by 7-10 percentage points, but public sector banks might need to increase their holdings.

Published on: October 30, 2024


Yet another ARC to shut shop, this time an Aditya Birla joint venture

Aditya Birla Asset Reconstruction Company is winding down its operations in India, joining other fund-backed ARCs exiting due to challenges in the sector. The decline in non-performing loans and preference for government-backed NARCL's terms have contributed to this trend, highlighting shifting investor interests.

Published on: October 30, 2024


Top banks keen to share project loan for Adani Enterprises

Bank of Baroda (BoB), Punjab National Bank (PNB), Union Bank of India, Central Bank of India, ICICI Bank and Axis Bank have either committed or are in the process of committing funds to the $4-billion polyvinyl chloride (PVC) project at Mundra in Gujarat, people familiar with the developments said.

Published on: October 30, 2024


NCLAT to decide on continuity of moratorium if stay order obtained

The NCLAT is examining the issue of whether a stay on insolvency admission orders impacts the moratorium on payment of dues, following an appeal by Axis Bank. The NCLT had ruled that moratoriums continue even with a stay, reversing transactions during the stay.

Published on: October 30, 2024


Returned assets of over Rs 185 cr to banks in loan fraud case: ED

The Enforcement Directorate returned assets worth over Rs 185 crore to SBI-led banks defrauded by Surya Pharmaceutical Ltd. using fabricated documents for loans. The promoters, Rajiv Goyal and Alka Goyal, fled India and were declared proclaimed offenders. The ED assisted banks in reclaiming assets through a special court order.

Published on: October 30, 2024


IndusInd Bank collaborates with Trustmore to offer digital escrow services in India

IndusInd Bank announces a strategic alliance with Trustmore to offer digital escrow services across India. IndusInd Bank aims to empower customers with secure digital banking solutions, while Trustmore plans to expand its presence in the financial sector, benefiting over 150,000 businesses.

Published on: October 30, 2024


IBBI proposes new liquidation mechanism to boost recovery

Stressed assets undergoing liquidation under insolvency laws will now be listed and auctioned on the eBKray platform, run by PSB Alliance. This move, facilitated by IBBI and Indian Banks' Association, aims to maximize recovery for creditors by improving transparency and making asset details continuously available to the public.

Published on: October 30, 2024


Axis Bank says AI won’t mean job losses as it adds frontliners

Axis Bank says artificial intelligence will alter work processes but won't result in overall job cuts. The bank is increasing its digital staff and focusing on technology and customer-facing roles. It is using AI for customer service and targeting advertisements, aiming for growth and efficiency while keeping its workforce intact in the future.

Published on: October 30, 2024


SBI now cautious, selective about lending to NBFCs, says Ashwini Kumar Tewari

State Bank of India is cautious about lending to non-banking financial companies due to regulatory concerns and interconnected lending issues. The bank is focusing on better-quality NBFCs, renewables, and real estate sectors for corporate loans. Renewable energy and real estate projects are showing strong growth, while thermal power and SME rooftop solar projects are also receiving support.

Published on: October 29, 2024


Microfinance loans continue to weigh on banks

Indian lenders such as Kotak Mahindra Bank, IndusInd Bank, IDFC First Bank, and RBL Bank foresee ongoing asset quality issues in the microfinance sector for several more quarters. Overleveraging and rural economic slowdown are cited as major reasons, leading to increased provisions and cautious disbursement strategies.

Published on: October 29, 2024


RBI allows home loan disbursals sanctioned before Oct 20: Navi Finserv

The Reserve Bank of India has permitted Navi Finserv to resume disbursing scheduled home loans sanctioned prior to October 20. This decision comes as a relief to homebuyers waiting for their loans amid earlier restrictions imposed due to supervisory concerns. Similar restrictions were placed on three other NBFCs.

Published on: October 29, 2024


Big Indian banks HDFC, Kotak and others stung by small borrowers' rising loan defaults

Defaults by highly leveraged small borrowers are increasing stress on India's top banks, with a significant impact on personal loans and micro-credit segments. Top private sector banks report rising bad loans, while provisions for such loans have also been increased. Analysts anticipate elevated stress levels for several quarters.

Published on: October 29, 2024


Lockton gets IRDAI nod to buy Arihant Insurance Broking

American insurance broker Lockton has acquired Arihant Insurance Broking Services Limited, with approval from India’s IRDAI. The acquisition aligns with Lockton's strategy to meet rising demand for sophisticated risk management solutions in India, leveraging its global expertise to enhance the Indian insurance sector.

Published on: October 29, 2024


Jio Financial arm Jio Payment Solutions receives RBI nod to operate as online payment aggregator

Jio Payment Solutions Limited received approval from the RBI to operate as an online payment aggregator, boosting its digital payment services. Effective from October 2024, this authorization supports Jio Financial Services' ambition to lead in digital finance, with significant growth in digital transactions and a notable presence in payment systems.

Published on: October 29, 2024


FSIB selects Ashok Chandra for MD of Punjab National Bank

FSIB has recommended Ashok Chandra, currently Executive Director of Canara Bank, for the role of MD & CEO of Punjab National Bank, succeeding Atul Kumar Goel in December. Chandra, with a Masters in Economics, began his banking career in 1991 and was chosen from 16 candidates based on performance and experience. The final appointment decision awaits the Appointments Committee of the Cabinet.

Published on: October 28, 2024


RBL Bank to launch co-branded credit cards with Mahindra Finance

Mahindra Finance plans to launch a co-branded credit card with RBL Bank after receiving approval from the RBI. This new offering aims to cater to customers' aspirational needs, aligning with the rise of e-commerce and tech advancements. Mahindra Finance holds a 3.53% strategic stake in RBL Bank.

Published on: October 28, 2024


What is a digital credit line? How does it work?

A digital credit line offers flexible and convenient borrowing options by allowing users to access funds as needed within a pre-approved limit. Interest is charged only on the amount withdrawn, making it an ideal solution for managing short-term expenses and fluctuating cash flows.

Published on: October 28, 2024


Slice and North East Small Finance Bank complete merger formalities, set to become a single banking entity

Bengaluru-based fintech startup Slice completed its merger with North East Small Finance Bank on October 27, obtaining all necessary approvals. The merger aims to create a technology-driven bank, enhancing operations and customer experience while expanding its reach across India, particularly in the Northeast.

Published on: October 28, 2024


Tweak rule to facilitate same-day settlement of FPI trades: Bankers

Large multinational banks have requested that the RBI amend rules to enable same-day settlement of stock trades (T+0) for foreign portfolio investors in India. This change, aimed for late December or early January, necessitates a directive to allow banks to issue irrevocable payment commitments.

Published on: October 27, 2024


SBI named Best Bank in India for 2024 by Global Finance Magazine

State Bank of India (SBI) was named the Best Bank in India for 2024 by Global Finance Magazine at its 31st Annual Best Bank Awards in Washington. SBI Chairman CS Setty received the award, recognizing the bank's commitment to exceptional services and financial inclusion nationwide.

Published on: October 27, 2024


Shaktikanta Das receives award for A+ grade in Central Bank Report Cards 2024 in USA

Shaktikanta Das, the Governor of Reserve Bank of India (RBI), on October 26, received award for A+ grade in Central Bank Report Cards 2024, for the second consecutive year.

Published on: October 27, 2024


IDFC First Bank's Q2 profit plummets 73%

IDFC First Bank's profit dropped 73% year-on-year to ₹201 crore in September 2024 due to a significant increase in provisions for its microfinance business. Provisions rose to ₹1,732 crore with microfinance and toll account impacts. Net interest income grew by 21% while microfinance's portfolio percentage reduced.

Published on: October 26, 2024


IRDAI tightens fraud rules post hacking incidents

The Insurance Regulatory and Development Authority of India introduces new guidelines to combat online fraud in the insurance sector. Insurers must implement anti-fraud policies, fraud monitoring units, and advanced cybersecurity measures. Regular fraud awareness programmes for employees, agents, and policyholders are also mandated to increase vigilance and protect sensitive data from cybercriminals.

Published on: October 25, 2024


Credit growth for banks to moderate to 12 percent in FY25: Icra

Icra predicts a slowdown in credit growth for banks and NBFCs due to regulatory measures and tighter funding conditions. Bank credit growth is set to decelerate to 12% YoY in 2024-25, while NBFCs' asset growth may drop sharply. Regulatory actions and overleveraging in the retail segment could further strain asset quality and funding flows.

Published on: October 25, 2024


RBI revokes authorisation certificate of UAE Exchange Centre

The Reserve Bank of India revoked UAE Exchange Centre LLC's Certificate of Authorisation for non-compliance with regulatory norms, preventing it from conducting cross border in-bound money transfers. UAEEC, based in Dubai, was previously authorized as an 'Overseas Principal' for such transactions.

Published on: October 25, 2024


Higher rates, increasing credit costs to temper profits for micro finance cos says S&P

Rising delinquencies in India's microfinance sector will increase credit costs above 5% this fiscal, impacting profitability, S&P analysts say. Regulatory actions and higher borrowing costs pose risks, while expected policy rates reduction may offer some relief. RBI bans on certain NBFCs aim to improve compliance.

Published on: October 25, 2024


Partha Pratim Sengupta to lead Bandhan Bank as Managing Director and CEO from November 1

Partha Pratim Sengupta has been appointed as the Managing Director and Chief Executive Officer of Bandhan Bank, effective November 1, 2024, for a three-year term. This decision follows the approval from the Reserve Bank of India and the Bank's Nomination and Remuneration Committee.

Published on: October 25, 2024


Mudra loan limit doubled to Rs 20 lakh in line with Budget announcement

"This increase aspires to further the overall objective of the Mudra Scheme, which is funding the unfunded," the finance ministry said in a statement, adding that this enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion.

Published on: October 25, 2024


Telegram defends data leak accusations by Star Health saying it cannot do 'policing' work

Star Health has taken legal action against Telegram and a hacker for leaking personal data of policy holders through chatbots. A Tamil Nadu court has ordered Telegram to block any chatbots or websites in India that offer the data online. Telegram has not responded to the allegations yet.

Published on: October 25, 2024


Overhang for Axis Bank over, Amitabh Chaudhry secures re-appointment from RBI

Axis Bank's CEO Amitabh Chaudhry has been reappointed for a third term, effective January 2025 to December 2027, following RBI approval. His tenure saw significant improvements in asset quality, digital capabilities, and retail offerings. The bank recently reported an 18% rise in net profit for the September quarter.

Published on: October 25, 2024


TARC raises Rs 1,000 crore to refinance debt

Real estate developer TARC Ltd raised Rs 1,000 crore from a consortium led by Kotak Mahindra Bank, at 12.75% interest, to refinance existing debt and secure Rs 250 crore additional working capital. Projects TARC Kailasa and TARC Tripundra's cash flows anchor the refinancing.

Published on: October 25, 2024


Road ready for multilateral banks to meet funding needs: Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman states that a pathway has been built for multilateral development banks to address global challenges effectively. She emphasizes India's ongoing commitment to disaster resilience, debt management, and comprehensive reforms to achieve sustainable development goals by 2030.

Published on: October 24, 2024


NBFC growth to be hit due to rising unsecured loan stress

Non-bank financial companies (NBFCs) will face stress from unsecured loans due to higher interest rates impacting borrowers' repayment capacities this fiscal year, says rating agency ICRA. Growth in microfinance and other unsecured loans will slow significantly. As a result, NBFC profitability will be affected. Regulatory guidelines will also play a role in moderating credit growth.

Published on: October 24, 2024


RBI rejects top cop Asthana’s appointment to board; delay in notification an oversight, says REL

Religare Enterprises informed stock exchanges that the Reserve Bank of India rejected its proposal to appoint Rakesh Asthana as a director. This rejection occurred on May 15, 2024. Religare attributed the delay in disclosure to an oversight and faces legal challenges from the Burman family regarding the appointment and AGM postponement.

Published on: October 24, 2024


Axis Bank re-appoints Amitabh Chaudhry as MD & CEO of bank for 3 years

Axis Bank on Thursday reappointed Amitabh Chaudhry as the Managing Director and Chief Executive Officer of the bank for the next three years starting January 1, 2025.

Published on: October 24, 2024


Irdai raises concerns over high auto cover commissions

India's automotive industry, which accounts for 7.1% of the nation's GDP, has boosted the growth of motor insurance. This sector now represents around 45% of the total business of general insurance companies. Car dealers, as primary intermediaries in the customer purchasing journey, have become a critical distribution channel for motor insurance.

Published on: October 23, 2024


Banks tighten expenses as credit costs, higher slippages hurt

"We have said we would like to continue to invest in the franchise, given the opportunity," Puneet Sharma, chief financial officer of Axis Bank, told analysts in post-earnings call. "Where we are required to tighten our belts, we do have the ability to tighten our belts. On expenses last year, we were growing at the 27% to 29% year-on-year growth range. You will see moderation in growth of costs through FY25."

Published on: October 23, 2024


FIU slaps Rs 54L fine on Union Bank of India for multiple PMLA violations

The Financial Intelligence Unit imposed a fine of Rs 54 lakh on Union Bank of India for failing to report suspicious transactions and inadequately conducting due diligence under anti-money laundering laws. The federal agency found significant irregularities in accounts linked to an NBFC and its associated entities.

Published on: October 23, 2024