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Navneet Singal Oct 24 ,2024
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Vodafone Idea's network upgrade plans face potential delays as banks demand additional collateral for issuing letters of credit to equipment suppliers. Despite claims of sufficient funds for the fiscal year, banks remain cautious due to Vi's substantial debt, including AGR dues. This situation could hinder Vi's ability to compete effectively with rivals like Jio and Airtel.
Published on: November 20, 2024
The Employees' Provident Fund Organisation (EPFO) is poised to relax regulations, enabling more private banks to collect provident funds. This initiative aims to streamline business operations for companies, enhance convenience for subscribers, and expedite fund transfers for the retirement body.
Published on: November 20, 2024
The Indian insurtech sector has raised over USD 2.5 billion and is expected to attract more investment due to significant growth opportunities, according to a report by Boston Consulting Group (BCG) and the India InsurTech Association (IIA). India is home to around 150 insurtech companies, including 10 unicorns and over 45 "minicorns," with revenue increasing 12 times in the past five years to reach USD 750 million.
Published on: November 20, 2024
Yes Bank has partnered with Vegapay to launch a new platform called 'Credit Line on UPI'. This platform will allow YES Bank to offer customised credit programs to its customers through UPI. The platform is expected to help bridge the credit gap in India by providing seamless credit solutions to a wider audience.
Published on: November 20, 2024
The microfinance sector in India is witnessing a surge in bad loans, reaching an 18-month high of 11.6% in the September quarter. This raises concerns about overleveraging and has prompted warnings from regulators. Small finance banks are among the worst hit, with a bad loan ratio exceeding 15%.
Published on: November 19, 2024
The Insolvency and Bankruptcy Board of India (IBBI) has put forward changes to liquidation rules, aiming to make the process smoother. These changes include simplifying bidder participation in auctions and allowing voluntary liquidation even with uncalled capital, aiming for quicker resolutions.
Published on: November 19, 2024
India's insurance regulator, IRDAI, urged banks to address concerns regarding mis-selling of insurance products through their channels. This follows Finance Minister Nirmala Sitharaman's criticism of banks prioritizing insurance sales over core banking activities. While acknowledging the role of bancassurance in expanding insurance coverage, both Sitharaman and IRDAI chief Debasish Panda emphasized the need for ethical practices and customer-centric approaches.
Published on: November 19, 2024
SBI has requested the Reserve Bank of India for permission to conduct factoring business both within the bank and through its subsidiary, SBI Global Factors. SBI argues that the two entities serve different client bases, with the bank focusing on large overseas clients and the subsidiary catering to smaller local companies.
Published on: November 19, 2024
As per the notification, the scheme shall come into force from FY24. To qualify, banks must meet at least three criteria, including a positive return on assets (RoA), net NPAs (non-performing assets) below 1.5%, a capital to risk-weighted asset ratio (CRAR) exceeding the regulatory requirement by 200 basis points, and a cost-to-income ratio of no more than 50%.
Published on: November 19, 2024
Debasis Panda, IRDAI Chairman, urged bankers to prioritize their core functions and avoid solely focusing on insurance sales. While acknowledging the benefits of bancassurance in expanding insurance penetration, Panda highlighted concerns about mis-selling and emphasized the need for ethical practices. He stressed the importance of restoring confidence in the system through collaborative efforts between banks and insurers.
Published on: November 19, 2024
In a circular on September 30, regulator RBI pointed out irregularities in granting loans against gold ornaments and jewellery. This was after the central bank found issues in the sourcing of gold loans, valuation, due diligence, end-use monitoring, auction transparency, loan-to-value (LTV) ratio monitoring, and the application of risk weights.
Published on: November 18, 2024
SBI Chairman C.S. Setty highlighted that India's improving investment climate and digitalization are shifting people towards diverse investment options beyond traditional bank deposits. He acknowledged that banks haven't prioritized deposit mobilization in recent years, but expressed optimism that deposits will regain importance as incomes rise.
Published on: November 18, 2024
The Reserve Bank of India extended its control over Abhyudaya Cooperative Bank for another year, maintaining Satya Prakash Pathak as administrator. This decision, citing public interest, comes after the bank's board was superseded due to serious governance concerns. Despite the extended oversight, Abhyudaya Cooperative Bank will continue regular operations under Pathak's guidance and a committee of advisors.
Published on: November 18, 2024
Ujjivan Small Finance Bank is taking steps to improve its financial health by selling off Rs 270 crore in bad loans, primarily from its microfinance portfolio. This decision was made after the bank's asset quality declined, with its gross non-performing asset ratio rising to 2.52%.
Published on: November 18, 2024
Finance Minister Nirmala Sitharaman addressed concerns about high bank interest rates, calling for more affordable options to support business expansion. She acknowledged the stress these rates place on borrowers and urged banks to prioritize lending over insurance product sales, emphasizing the government's close monitoring of economic challenges.
Published on: November 18, 2024
Bajaj Finance has announced a 21% increase in its Fixed Deposit book, reaching Rs 66,131 crore by September 30, 2024. The company's customer base has grown to over 92 million, with 61.67 million active app users. Bajaj Finance attributes its success to its reputation for trust and competitive interest rates. The company offers FD rates up to 8.
Published on: November 18, 2024
RBI Governor Shaktikanta Das urged bank boards to proactively manage risks by monitoring portfolios, identifying over-concentration, and addressing potential vulnerabilities. He emphasised the need to strengthen internal governance to curb unethical practices and adapt to evolving challenges like technological advancements and climate change. Das highlighted the banking sector's strength while advocating for leveraging favorable conditions to enhance resilience and sustainability.
Published on: November 18, 2024
The Reserve Bank of India Governor cautioned banks about misselling practices. He stressed the importance of ethical conduct for the banking sector's long-term health. The Economic Survey 2024 highlighted the issue of misselling in the insurance industry. It called for better claim settlements and transparency. The insurance sector shows potential for growth, with premiums expected to rise.
Published on: November 18, 2024
Finance Minister Nirmala Sitharaman announced that SBI will expand its network by opening 500 new branches, reaching a total of 23,000 branches by FY25. This expansion, she noted, is a testament to SBI's growth from its humble beginnings as the Imperial Bank of India in 1921 to its current status as a banking giant serving over 50 crore customers.
Published on: November 18, 2024
Fusion Finance, a microfinance company, is facing financial difficulties. The company reported a significant loss for the recent quarter. Deloitte, the company's auditor, issued a warning. Deloitte stated that Fusion Finance's ability to continue operating is uncertain. The company is in talks with lenders to secure a loan moratorium.
Published on: November 18, 2024
100% FDI in Insurance: The Indian government is poised to permit 100% foreign direct investment in the insurance sector, aiming to attract global players and boost insurance coverage. The move, part of the upcoming Insurance Amendment Bill, will also allow agents to sell policies from multiple companies, enhancing market efficiency and consumer choice.
Published on: November 18, 2024
Piramal Enterprises Ltd and Bain Capital Credit have relinquished their license for India Resurgence Asset Reconstruction Company to the Reserve Bank of India. Regulatory obstacles and a shrinking pool of distressed assets have made the ARC business less appealing, leading to increased exits from the market.
Published on: November 17, 2024
Indian banks are intensifying their efforts to attract deposits from non-resident Indians (NRIs), particularly in Kerala, a hub for NRI remittances. Banks are expanding their operations in the Gulf countries and offering specialized products and services to cater to the growing NRI customer base.
Published on: November 17, 2024
WestBridge Capital and Tata AIG's outgoing CEO, Neelesh Garg, are teaming up to launch a new AI-driven general insurance venture. The venture will focus on health and motor insurance, aiming to tap into India's large uninsured population. WestBridge will hold a majority stake, with Garg owning 10%. The new entity is expected to launch by mid-2025, pending regulatory approvals.
Published on: November 17, 2024
Cedar-IBSi Capital is actively seeking to invest in 10-15 startups specializing in banking and insurance technology. With commitments reaching Rs 50-75 crore from their Rs 240 crore early-stage fund, they aim to allocate Rs 4-10 crore per company. Their primary focus is on startups that offer innovative solutions to modernize outdated systems within financial institutions.
Published on: November 16, 2024
Credit card users in India spent more online in September, driven by e-commerce discounts and festive sales. Online card spending reached Rs 1,15,168 crore in September, surpassing in-store spending. E-commerce platforms like Flipkart and Amazon saw significant sales growth, particularly in mobile phones and electronics.
Published on: November 16, 2024
In the September quarter, recovery from defaulting companies under India's Insolvency and Bankruptcy Code (IBC) improved, with recovery reaching nearly 97% of a company's fair value, up from 84% in the June quarter. However, recovery against creditors' claims eased to 28.3%, down from 31.1%.
Published on: November 16, 2024
Indian banks are turning to certificates of deposit (CDs) to bridge the gap between loan demand and deposit growth. CD issuances have surged by 69% this fiscal as banks compete for deposits amid tight liquidity. Analysts predict that deposit rates will remain elevated despite anticipated rate cuts.
Published on: November 15, 2024
Canara Bank has declared loans given to Reliance Communications and its unit as fraudulent. The bank alleged the Anil Ambani-promoted company misappropriated Rs 1,050 crore by diverting funds for purposes other than sanctioned. Reliance Communications refuted the allegations, stating the loans were taken before insolvency proceedings began and are protected under insolvency laws.
Published on: November 15, 2024
Chennai-based matchmaking service provider, Matrimony.com, has introduced a new financial technology platform designed to provide financial assistance for marriages. The platform offers comprehensive loan solutions through partnerships with leading financial institutions, aiming to simplify wedding planning and budgeting while prioritizing financial well-being.
Published on: November 15, 2024
State Bank of India is seeking a five-year loan of up to $1.25 billion, marking the largest dollar-denominated loan from India's financial sector this year. The loan, arranged by CTBC Bank, HSBC, and Taipei Fubon Bank, will be used for general corporate purposes.
Published on: November 15, 2024
Loan disbursal to microfinance borrowers decreased by nearly a third in the second quarter. Banks reduced lending more than non-bank lenders. The overall microfinance market size also contracted for two consecutive quarters. The decline is attributed to a deliberate effort to control the overheated market after significant growth in the previous two years.
Published on: November 14, 2024
RBI Deputy Governor Swaminathan J urged urban cooperative banks to embrace digitalization and strengthen cybersecurity, emphasizing the need for improved liquidation processes to safeguard depositors. He highlighted the importance of collaboration between RBI and registrars of co-operative societies. Deputy Governor Rao stressed cooperative banks' role in financial inclusion and urged stronger governance and risk management.
Published on: November 14, 2024
The gap between credit and deposit growth is shrinking as both are seeing slower growth compared to last year. While credit growth is moderating due to factors like the HDFC merger and RBI measures, deposit growth is facing challenges from attractive alternative investments.
Published on: November 14, 2024
India's largest lender, SBI, raised its marginal cost of fund-based lending rate (MCLR) by 0.05% for several tenors, including the one-year MCLR, which now stands at 9%. This is the second such increase recently, attributed to rising deposit costs and concerns about potential impacts on lending rates. SBI Chairman, C.S.
Published on: November 14, 2024
The All India Bank Officers' Confederation (AIBOC) demanded a 5-day work week for bank employees, citing an agreement reached in March 2024. AIBOC highlighted staff shortages and safety concerns due to violent attacks on bank employees. They urged the government to expedite the implementation of the 5-day work week to improve work-life balance and productivity.
Published on: November 14, 2024
The TReDS platform has significantly helped Indian MSMEs receive faster payments. It allows them to sell unpaid invoices to financiers at a discounted rate, providing quick access to working capital. This has been crucial for their growth, addressing the challenge of delayed payments from larger buyers.
Published on: November 14, 2024
Previously banks would rely on complaints raised by customers to check fraudulent activities, but now they are trying to set up parameters which can detect mule accounts even before they get used for large value transactions
Published on: November 13, 2024
Several microfinance lenders in India have reduced their lending rates in recent months following regulatory scrutiny from the Reserve Bank of India, which aims to ensure fair and transparent pricing for borrowers at the bottom of the pyramid.
Published on: November 13, 2024
Indian banks are facing significant losses in corporate insolvency cases, with haircuts exceeding 70% due to delays in resolution processes. The lengthy timelines, often exceeding the stipulated 270 days, are leading to a higher number of liquidations, impacting lenders' recovery prospects.
Published on: November 13, 2024
The CBI has concluded its investigation into allegations of wrongdoing by ICICI Bank officials in granting a loan to NDTV promoters. The agency found no evidence of collusion, criminal conspiracy, or abuse of position in the loan repayment at a reduced interest rate. The CBI determined that the interest rate reduction was justified based on various factors, including the borrowers' financial situation and the volatile share market.
Published on: November 13, 2024
India's digital economy is booming, with fintech driving digital payments and e-markets expanding rapidly. Deputy Governor of Reserve Bank of India, Michael Debabrata Patra, stated that the digital economy currently makes up a tenth of India's GDP and is projected to reach a fifth by 2026.
Published on: November 13, 2024
The Reserve Bank of India has again designated SBI, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks for 2024. This classification requires these banks to maintain higher capital reserves to ensure financial stability. SBI, categorized in the highest bucket, will need to increase its Common Equity Tier 1 capital to 0.
Published on: November 13, 2024
Proposal includes primary infusion into the shadow bank, secondary share sale by promoters, open offer; Founder Nandakumar denies any selloff plan.
Published on: November 12, 2024
Standard Chartered is boosting its wealth management operations in India, aiming to capitalise on the country's growing affluence. The bank plans to hire over 100 relationship managers, raise entry thresholds for wealth management services, and leverage its corporate banking ties to attract high-net-worth individuals.
Published on: November 12, 2024
A new report reveals that female business correspondents (BCs) outperform their male counterparts in engaging female customers, achieving 66% higher transaction values and earning 24.4% more. Despite this success, the report highlights challenges faced by women BCs, including work-life balance and the need for tailored support and flexible work arrangements.
Published on: November 12, 2024
The Reserve Bank of India has canceled the license of The Durga Co-operative Urban Bank, based in Vijayawada, due to inadequate capital and earning prospects. The bank will cease operations on November 12, 2024. Depositors will receive insurance claims up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Published on: November 12, 2024
Public sector banks in India have reported strong financial results for the first half of the fiscal year, with a 26% increase in net profit and an 11% growth in aggregate business. The improved performance is attributed to banking sector reforms, including enhanced credit discipline and resolution of stressed assets.
Published on: November 12, 2024
Bank of India has set aside Rs 200 crore after MTNL, a government-owned telecom company, defaulted on a Rs 1,000 crore loan. MTNL's financial struggles led the bank to classify the loan as high-risk, requiring the provision. Despite this, Bank of India reported a significant increase in net profit for Q2FY25.
Published on: November 12, 2024
DBS Bank India is set to have a new CEO. Rajat Verma, the current head of institutional banking, has been nominated for the role. Verma will replace Surojit Shome, who is retiring. Shome has been at the helm of DBS Bank India since 2015. The nomination has been submitted to the Reserve Bank of India for approval.
Published on: November 12, 2024
