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Navneet Singal Aug 21 ,2024
Published In : EvoBreyta
Navneet Singal Oct 26 ,2023
Published In : Taxmann
Navneet Singal Oct 13 ,2023
Published In : TAXMANN
The GST Council is set to discuss reducing the high GST on health and life insurance policies. While there's consensus on lowering the tax for life insurance, concerns remain about health insurance. States worry that insurers may not pass on the savings to consumers, and there's no active anti-profiteering body to ensure this happens.
Published on: September 7, 2024
AU Small Finance Bank and United India Insurance Company have announced a strategic partnership to offer general insurance solutions to the bank's customers. This collaboration aims to provide reliable and affordable insurance options across various categories, leveraging UIIC's extensive network and AU SFB's expanding infrastructure, covering 21 states and 4 union territories.
Published on: September 6, 2024
The Reserve Bank of India has imposed penalties on three entities, including Housing and Urban Development Corporation Ltd, for non-compliance with specific regulatory provisions. Housing and Urban Development Corporation Ltd faces a penalty of Rs 3.5 lakh, while Godrej Housing and Aadhar Housing Finance Ltd have been fined Rs 5 lakh each.
Published on: September 6, 2024
Sanjeev Mehta has resigned as Standard Chartered Bank's Managing Director and Head of Transaction Banking Sales for South Asia after a 17-year tenure. Mehta, who left the bank in July, plans to start a new greenfield venture.
Published on: September 6, 2024
The Indian banking sector is struggling to attract deposits due to competition from mutual funds offering higher returns. Regulatory restrictions limit banks' ability to provide attractive returns, leading to a shift in investor preferences. Banks are exploring new strategies to address this challenge and maintain stability.
Published on: September 6, 2024
Health Insurance Tax: The GST Council is set to discuss reducing the tax burden on health and life insurance policies, but faces resistance from states concerned about revenue loss. The debate follows Union Transport Minister Nitin Gadkari's call to scrap GST on health insurance due to rising premiums. Other agenda items include online gaming taxation and company branch regulations.
Published on: September 6, 2024
The Supreme Court of India has issued a notice to former ICICI Bank CEO Chanda Kochhar and her husband Deepak Kochhar on a CBI plea against the Bombay High Court's order declaring their arrest illegal. The couple was arrested in 2022 over an alleged loan fraud case involving Videocon Group and granted interim bail in January 2023.
Published on: September 6, 2024
India aims to achieve a $30 trillion GDP by 2047, requiring significant growth in the financial services sector, especially banks. A report by BCG, FICCI, and Indian Banks’ Association highlights the need for $4 trillion in bank capital and emphasizes financial inclusion, digitization, and emerging technologies as key drivers for this growth.
Published on: September 6, 2024
“A large number of people are breaking out of the real poverty trap, so they’re able to start focusing on providing for the future,” Sanlam Chief Executive Officer Paul Hanratty said in an interview Thursday. “India is really at that point where a huge chunk of the population are now able to save and invest for the future.”
Published on: September 6, 2024
The Insurance Regulatory and Development Authority of India (IRDAI) has introduced new rules for life and health insurance premiums. Insurers can no longer collect initial premiums with the proposal form unless the policy is issued immediately. This change aims to prevent idle customer money and ensure transparency in the insurance process.
Published on: September 5, 2024
Kotak Mutual Fund CEO Nilesh Shah suggests that bank deposits could grow faster if the government parks short-term funds with commercial banks instead of the Reserve Bank of India. Currently, government funds with the RBI earn no interest and do not enter the banking system until spent by the government.
Published on: September 5, 2024
US pension funds and endowments with $1.8 trillion in assets are visiting India to explore investment opportunities in healthcare, energy, and other sectors. Led by US Consul General Mike Hankey, the delegation aims to boost US investments in India, focusing on high returns for American retirees while supporting India's growth.
Published on: September 5, 2024
SBI Chairman CS Setty highlighted the limited supply of cybersecurity professionals as a significant challenge. Investments in cybersecurity are increasing, but professional support remains scarce. HSBC faces 1 lakh cyberattacks daily. Additionally, SBI is boosting marketing efforts amid slow deposit growth, while Standard Chartered Bank noted challenges in dollar bond issuances due to increased withholding tax.
Published on: September 5, 2024
The Finance Ministry has directed PSU insurance companies to expedite claim settlements for those affected by heavy rains and floods in Andhra Pradesh and Telangana. Special camps will be organized, and claim processes will be simplified. Contact details of nodal officers will be widely advertised to assist policyholders.
Published on: September 5, 2024
Banks face challenges in attracting deposits due to regulatory restrictions, making mutual funds more appealing. Indian Banks’ Association chairman MV Rao highlights the need for government support to draw savers. HSBC India CEO suggests studying deposit creation causes, while SBI chairman notes difficulties with special schemes like green deposits.
Published on: September 5, 2024
The microfinance sector is expected to stabilize by the end of the third quarter, with improvements anticipated from the fourth quarter onward due to new measures adopted by lenders. However, the sector is currently facing challenges, including high portfolio risk and elevated credit costs, which are likely to persist into the second quarter.
Published on: September 5, 2024
Wells Fargo has expanded its talent attraction strategy in India by launching the Transgender Persons Hiring Program. This initiative aims to enhance diverse representation and provide employability skills training for transgender individuals. Partnering with PeriFerry, Wells Fargo sponsors 30 transgender individuals, promoting workforce diversity and inclusion across multiple business lines.
Published on: September 5, 2024
India's digital payments industry is booming, with transaction volumes growing by 42% YoY in FY 2023-24. A PwC report projects a threefold increase in transaction volumes by FY 2028-29. UPI leads this growth, accounting for over 75% of transactions and expected to reach 439 billion transactions by FY 2028-29.
Published on: September 5, 2024
India's National Investment & Infrastructure Fund plans to raise $4 billion in its largest-ever fundraise early next year. The fund, backed by the Indian government and global investors, aims to support infrastructure upgrades. This move follows a leadership change and recent investments in renewable energy and smart meter platforms.
Published on: September 5, 2024
IndusInd International Holdings' ₹9,861-crore acquisition of Reliance Capital faces a new hurdle as the company seeks to adjust over ₹1,000 crore in GST dues owed by Reliance Capital's insurance subsidiaries. Creditors are reluctant to accept this adjustment, leading to a deadlock that may require NCLT intervention.
Published on: September 4, 2024
Banks in India are offering higher interest rates on deposits to attract savers, with more than two-thirds of deposits earning 7% or above by June 2024. This shift is driven by the need to meet rising credit demand, which continues to outpace deposit growth.
Published on: September 4, 2024
Legal expenses for India's top 500 companies rose by 17% in the last fiscal year, driven by international deal activities, dispute resolution costs, and increased compliance. The Nifty 500 companies spent ₹52,568 crore on legal fees. The top spenders included Reliance Industries and Sun Pharmaceutical Industries.
Published on: September 4, 2024
The committee is not in favour of a blanket GST exemption on life and health insurance premiums, said people aware of deliberations. It's likely to give a detailed report on the revenue impact under different rate scenarios for insurance products to the GST Council, which is scheduled to meet on September 9.
Published on: September 4, 2024
Star Health and Allied Insurance Co. Ltd. plans to diversify into term and motor insurance markets by leveraging its existing health insurance portfolio. The company aims to apply for a composite insurance license once the Insurance Act is amended, targeting a total book growth to Rs 30,000 crore by 2028.
Published on: September 4, 2024
The Global Trade Research Initiative (GTRI) has criticized the World Bank's suggestion for India to reconsider joining the Regional Comprehensive Economic Partnership (RCEP). GTRI argues that India's decision to stay out of RCEP remains valid due to concerns over trade deficits and reliance on China-centric supply chains, especially highlighted during the Covid-19 pandemic.
Published on: September 4, 2024
The transaction was concluded with a coupon rate of 9.30%, the company said Wednesday. The deal involved issuance of pass-through certificates (PTC) for an exact amount of Rs 119.12 crore.
Published on: September 4, 2024
Star Health Insurance has launched an industry-first insurance policy in Braille, aimed at visually-impaired individuals. The 'Special Care Gold' policy, created with the National Association of the Blind, offers tailored coverage for those with 40% or more disability. This initiative aims to provide inclusive health coverage and support services for a critical but underserved segment of customers.
Published on: September 4, 2024
The government is set to sell a 6.8% stake in General Insurance Corporation of India (GIC Re) through an offer-for-sale, priced at Rs 395 per share. This move aims to raise around Rs 4,700 crore and contribute to the disinvestment fund. The sale will be conducted over two days for different investor categories.
Published on: September 4, 2024
The number of credit cards in India is projected to reach 200 million by FY28-29, growing at a CAGR of 15%, according to a PwC report. The credit card industry has doubled its issuance over the past five years and is expected to continue this trend. However, debit card usage has declined due to the rising popularity of UPI and less attractive reward programs.
Published on: September 4, 2024
Banks have an advantage because of CASA, but CASA comes with the requirement of CRR and SLR. So it ends up balancing itself. Banks have stable sources of retail money and large deposits and it's also cheaper, but the cost to raise it (retail money) is large. In HFCs we have wholesale money, which may be expensive but the cost of raising it also lower. We also have ‘Bajaj’ brand advantage as compared to other HFCs, says Sanjiv Bajaj, Chairman, Bajaj Housing Finance.
Published on: September 3, 2024
"The issue was discussed at a meeting (last month) with the Advisory Board for Banking and Financial Frauds (ABBFF), and it was decided that it will be made mandatory for the lenders to check this list before dealing with such entities and further update it on a real-time basis," a senior bank executive told ET.
Published on: September 3, 2024
The Competition Commission of India has approved Ontario Teachers Pension Plan Board's acquisition of additional units in Highway Infrastructure Trust and Citrine Inclusion's stake in Utkarsh CoreInvest Ltd. These approvals are necessary for deals exceeding certain thresholds to ensure fair competition and prevent unfair business practices.
Published on: September 3, 2024
AU Small Finance Bank has applied to the Reserve Bank of India for voluntary transition to a universal bank. This change would ease regulatory norms, including lower capital adequacy requirements and reduced priority sector lending obligations. Only AU and Ujjivan Small Finance Bank meet the eligibility criteria set by RBI in April.
Published on: September 3, 2024
Recently, the net financial savings of households, have almost halved from the levels that existed in 2020-21 because of behavioural shifts underway in the form of unwinding of prudential savings accumulated during the pandemic as well as transitions from financial assets to physical assets such as housing, Patra said.
Published on: September 3, 2024
Sumitomo Mitsui Financial Group has taken full ownership of SMFG India Credit Co by increasing its stake to 100%. A Rs 1300 crore rights issue raised the company's capital adequacy ratio to 19.1%. CEO Shantanu Mitra projects a 29% growth in consolidated assets under management for the current fiscal year.
Published on: September 3, 2024
SBI chairman C S Setty said that despite years of infrastructure lending, banks lack the skills to finance emerging areas like green energy and battery storage. He mentioned a surge in NPAs from corporate lending has pushed banks towards personal loans. SBI plans to establish a center of excellence for emerging areas in collaboration with global banks.
Published on: September 3, 2024
Bajaj Finserv chairman Sanjiv Bajaj aims to establish Bajaj Housing Finance as a leading mortgage company, akin to HDFC, following HDFC's merger with its bank subsidiary. The company plans a Rs 6,560 crore IPO to expand and meet RBI's listing mandate. Focus areas include retail home loans, developer financing, and tech-enabled customer ease.
Published on: September 3, 2024
India's banks are facing a deposit shortage, causing concern among bankers and policymakers. Measures like restraining money growth to combat inflation, aggressive taxation on savings, and insufficient interest rates for savers are contributors. The Reserve Bank of India warns about potential liquidity issues, increasing the need for banks to mobilize household savings effectively.
Published on: September 3, 2024
Russia's trade with India is thriving, with Sberbank handling up to 70% of Russian exports to the country. Trade between the two nations nearly doubled to $65 billion in 2023. Despite Western sanctions affecting other markets, Sberbank has faced no operational issues in India. The bank is actively using Indian payment systems and sees no rupee surplus problems, thanks to increased Indian exports to Russia.
Published on: September 3, 2024
In recent feedback to the RBI, banks have suggested that the regulator impose an additional "run-off factor" of 2% to 2.25% as against the 5% increase prescribed in a recent draft guideline, sources aware of the development told ET. "Some banks have also proposed a gradual increase of three years in maintaining the liquid stocks under the new LCR (Liquidity Coverage Ratio) norms. They have requested a similar proportion of requests for other categories," a banker said on condition of anonymity.
Published on: September 2, 2024
FSIB, the headhunter for directors of state-owned banks and financial institutions, on Monday recommended Rama Mohan Rao Amara for the position of managing director of State Bank of India (SBI). Amara is currently Deputy Managing Director of the bank.
Published on: September 2, 2024
Credit card dues have increased the fastest among bank loans, reaching nearly Rs 2.8 lakh crore by July's end, seeing a 22% year-on-year growth. Personal loans now make up the largest share of non-food credit at 32.9%, growing by 14.4%. Loans against gold jewellery increased the most within personal loans, surging by 39%.
Published on: September 2, 2024
At ET World Leaders Forum, Kelly Mahon Tullier, Visa’s Vice Chair and Chief People Officer, talked about Visa's role in accelerating digital payments and financial inclusion, especially in India. She highlighted Visa’s innovation efforts, partnerships with regulators, support for small businesses, and initiatives empowering women entrepreneurs to thrive in the digital economy.
Published on: September 1, 2024
Google Pay's VP, Ambarish Kenghe, does not see any challenges with a potential cap on UPI market share due to the large number of players in the segment. Google Pay and PhonePe dominate 85% of UPI transactions. Kenghe stressed the importance of interoperability and advised startups to find niche markets.
Published on: September 1, 2024
Marc-Andre Blanchard, EVP and global head of sustainability at CDPQ, emphasized the importance of sustainability in driving profits and building businesses. CDPQ, with $452 billion in assets, focuses on sustainable investing to generate returns and foster economic development, particularly in low-carbon sectors, while actively engaging with portfolio companies and stakeholders.
Published on: September 1, 2024
Acko, supported by major private equity firms, plans to invest ₹1,000 crore in its life insurance sector over the next five years. Founder Varun Dua revealed the company's strategy will focus on term insurance and protection products, aiming to become a dominant player in this segment without launching investment-related offerings.
Published on: September 1, 2024
PNB Housing Finance, backed by Carlyle, aims to grow its affordable loan book to ₹15,000 crore by FY27. Currently, the affordable housing sector contributes ₹2,500 crore. The lender plans to shift focus to high-yielding segments and expects its overall loan book to grow by 18% in the next three years.
Published on: September 1, 2024
Lenders to debt-laden Reliance Capital have accused Hinduja Group's IIHL of delaying the resolution plan approved by NCLT for Rs 9,861 crore. IIHL awaits approval from India's DIPP. NCLT has directed RBI and DIPP to expedite this process, with a hearing set for September 19, 2024.
Published on: September 1, 2024
British insurer Aviva's India unit is under scrutiny for alleged tax evasion between 2017 and 2023. The company is accused of using fake invoices and covert cash payments to sales agents, potentially evading $5.2 million in taxes. Aviva is cooperating with authorities in their investigation.
Published on: August 31, 2024
Mastercard Inc. aims to combat online payment fraud by expanding the use of token technology to replace credit card numbers and passwords with biometric data such as fingerprints and face scans. The company is processing 1 billion tokenized transactions weekly and plans to tokenize all e-commerce transactions in Europe by the decade's end.
Published on: August 31, 2024
