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Banking/Finance-Industry-Economic Times
NDR InvIT, India's first warehousing InvIT, secured a groundbreaking $75 million investment from IFC through sustainability-linked bonds. This funding will fuel warehouse expansion, improve infrastructure, and promote eco-friendly practices, including EDGE Certification for existing facilities. The investment reflects the burgeoning Indian warehousing sector's growth potential, projected to reach 500 million sq ft by 2030, driven by ecommerce and manufacturing.
Published on: December 21, 2024
India secures a USD 350 million loan from the Asian Development Bank (ADB) to bolster its logistics sector. This funding, part of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program, will support policy reforms aimed at enhancing efficiency, attracting private investment, and improving supply chain resilience. The program will also promote sustainable economic growth and job creation.
Published on: December 21, 2024
The Supreme Court overturned a 2008 order that capped credit card interest rates at 30%. This ruling favors banks like Citibank and American Express, allowing them to charge higher rates. The court determined the National Consumer Disputes Redressal Commission lacked the authority to set interest rate ceilings, a domain reserved for the Reserve Bank of India.
Published on: December 20, 2024
Shriram Finance launched a new green finance vertical with a Rs 5,000 crore AUM target over four years. The initiative will focus on financing electric vehicles, charging stations, and renewable energy products. The company aims to increase its electric two-wheeler financing market share from 7% to 20% and will initially target Karnataka, Kerala, NCR, and Maharashtra.
Published on: December 20, 2024
The Reserve Bank of India (RBI) has fined IndusInd Bank Rs 27.30 lakh for violating deposit interest rate regulations. An inspection revealed savings accounts opened for ineligible entities. The RBI clarified the penalty addresses compliance issues and doesn't invalidate the bank's customer transactions.
Published on: December 20, 2024
The Reserve Bank of India (RBI) held its benchmark interest rate steady at 6.25% in December, prioritizing inflation control amid slowing economic growth. Outgoing Governor Shaktikanta Das emphasized the need to balance inflation and growth, while two MPC members favored a rate cut to stimulate the economy.
Published on: December 20, 2024
Bajaj Finance helps manage festive expenses. Bajaj Finserv BBPS offers a single platform for bill payments. Bajaj Pay integrates UPI, wallet, and FASTag services. Users can make quick, secure transactions. Cashback and reward programs are available. Enjoy a stress-free festive season with Bajaj Finance.
Published on: December 20, 2024
National Asset Reconstruction Co Ltd (NARCL) has offered ₹12,000 crore for the debt-ridden Jaiprakash Associates Ltd (JAL), sparking a Swiss Challenge auction. A dozen entities, including Phoenix ARC, Acre ARC, Arcil ARC, CFM ARC, Capri Global, and Cerberus Capital, have shown interest. The auction requires all-cash bids, potentially exceeding NARCL's offer, which includes government-backed security receipts.
Published on: December 20, 2024
The national consumer court had in 2010 restrained banks from charging interest rates in excess of 30% per annum from the credit card holders for their failure to make full payments on due date.
Published on: December 20, 2024
Indian companies ramped up overseas borrowings in 2024, exceeding $32 billion by October, surpassing the total for 2023. Non-bank finance companies led the charge, borrowing over $16 billion, primarily for on-lending. High US interest rates didn't deter borrowing, with many companies prioritizing access to larger loan sizes and managing rupee exposure.
Published on: December 20, 2024
The company, which saw a top management rejig earlier this year including appointment of new MD and CEO Arvind Kapil who took charge in June, has undertaken an AI led transformation of talent acquisition. “AI is a critical development and one of the big bets for a managing director,” said Kapil.
Published on: December 19, 2024
India's government auditor unearthed costly mistakes. Oriental Insurance Company lost Rs 194 crore on a crop insurance scheme. They also lost Rs 14.92 crore on an uninsured policy. SBI Cards lost Rs 19.65 crore due to poor credit checks. UTI Infrastructure wasted Rs 5.71 crore by re-tendering a PAN card printing contract.
Published on: December 19, 2024
ICICI Bank and Times Internet have launched a super-premium credit card, 'Times Black,' crafted from historic Times of India printing plates. Targeting ultra high-net-worth individuals, the card offers exclusive benefits like lounge access, reward points, and even helicopter rides. The annual fee is ₹20,000, waived for yearly expenditures of ₹25 lakh.
Published on: December 18, 2024
Digital lending NBFCs have requested the Reserve Bank of India to allow them to offer pre-approved credit lines on the UPI platform. They argue this will broaden access to low-cost, short-term credit, particularly for those new to credit, aligning with the RBI's objectives. The RBI recently granted this permission to small finance banks.
Published on: December 18, 2024
GMR Sports Ventures refinanced ₹1,000 crore of debt through ADIA and Barclays at a lower double-digit interest rate. The bonds, originally raised at 16%, were refinanced to reduce costs. This is part of GMR Group's broader strategy to refinance debt across its businesses, including a recent ₹6,300 crore agreement with ADIA for GMR Infra Enterprises.
Published on: December 18, 2024
Microfinance loan delinquencies are rising due to political events, weather disruptions, and excessive lending. Rural households prioritize food and secured loans over microfinance amidst job losses and high food inflation. Industry executives anticipate improvement next fiscal year as loan books are unwound and repayment capacity stabilizes.
Published on: December 18, 2024
QR code frauds in India doubled to nearly 40,000 in 2023-24, with losses tripling to Rs 56.34 crore. As of September 2024, over 18,000 cases involving Rs 22.22 crore have already been reported. The government, RBI, and NPCI are implementing preventative measures like device binding and awareness campaigns to combat these rising frauds.
Published on: December 18, 2024
ECB registrations through combined automatic and approval route in October was higher sequentially from $4.8 billion in September as well as year on year basis from $765 million last October.
Published on: December 18, 2024
Reliance Nippon Life Insurance and IndusInd Bank are discussing a partnership. IIHL's acquisition of RCAP is almost complete. This partnership will boost the insurance business. IIHL plans to expand its financial services. The deal is expected to close next month. This will benefit policyholders and customers. IIHL will divest most of RCAP's subsidiaries.
Published on: December 18, 2024
The State Bank of India (SBI) announced on Wednesday that the Government of India has appointed Rama Mohan Rao Amara as the new Managing Director of the bank. This appointment was reported by Reuters, citing sources.
Published on: December 18, 2024
Shriram Finance Ltd. secured a record $1.28 billion social loan, the largest offshore borrowing by an Indian shadow lender. The multi-currency deal includes dollar, euro, and dirham tranches with tenors ranging from three to five years. This borrowing follows tightened regulations on local currency loans, driving Indian shadow banks to seek offshore funding.
Published on: December 18, 2024
Businesses and industrial units will see increased premiums for fire and engineering insurance starting January. Catastrophic events like floods in Vijayawada and Vadodara have led to higher claims. Reinsurers are pushing for revised pricing and stricter underwriting. Industrial All Risk policies will also adopt stricter pricing rules from January 1.
Published on: December 17, 2024
Facing tighter regulations on unsecured lending, digital lenders in India are shifting towards secured options like property and business loans. This transition involves increased physical verification and collateral checks, prompting some lenders to adopt 'feet-on-the-street' approaches and explore physical branches.
Published on: December 17, 2024
Shriram Finance, India's 2nd-largest NBFC, secures a record $1.27 billion multi-tranche loan from global lenders including HSBC, MUFG, and SMBC. The loan, with maturities of three to five years, diversifies Shriram's funding sources amidst tighter RBI regulations and will support its lending business, including expansion into MSME financing.
Published on: December 17, 2024
The Reserve Bank of India (RBI) lifted business restrictions on Edelweiss Group's NBFCs, ECL Finance and Edelweiss ARC. The RBI had imposed these restrictions in May due to alleged "evergreening of stressed assets" involving structured transactions and connected AIFs. The RBI expressed satisfaction with the remedial measures taken by both companies to address the concerns.
Published on: December 17, 2024
The Reserve Bank of India (RBI) lifted business restrictions on ECL Finance Ltd and Edelweiss Asset Reconstruction Company Limited. The RBI had imposed these curbs in May due to supervisory concerns, including restrictions on structured transactions and acquiring financial assets. The companies subsequently implemented remedial measures, satisfying the RBI and leading to the lifting of the restrictions.
Published on: December 17, 2024
The Indian government's Production Linked Incentive (PLI) schemes across 14 sectors have attracted Rs 1.46 lakh crore in investments, leading to over Rs 12.50 lakh crore in increased production and sales as of August 2024. These schemes have also generated over 9.5 lakh jobs and spurred exports exceeding Rs 4 lakh crore.
Published on: December 17, 2024
India witnessed a rise in income tax return filings for the 2023-24 fiscal year, with over 8.09 crore returns submitted, compared to 7.40 crore the previous year. However, this represents only 6.68% of the population. Interestingly, nearly 4.90 crore individuals reported zero taxable income, a significant increase from the 4.64 lakh reported in 2022-23.
Published on: December 17, 2024
India's banking system faced its highest liquidity deficit in nearly six months due to advance tax payments and likely central bank intervention to stabilize the rupee. The deficit reached ₹1.5 trillion ($17.7 billion) as of Monday, pushing up borrowing costs. The RBI's dollar sales and festive season cash withdrawals further strained liquidity despite recent measures to boost it.
Published on: December 17, 2024
SBI alerted the public about deceptive videos circulating on social media. These videos falsely portray SBI officials endorsing investment scams. The bank clarified it has no connection with these schemes. SBI urged people to be cautious. These deepfakes use AI to manipulate videos. They can create realistic but fake depictions of individuals.
Published on: December 17, 2024
Non-performing assets (NPAs) of peer-to-peer (P2P) lending entities more than doubled to ₹1,163 crore in FY24, rising from ₹472.1 crore in FY23. This surge, representing 17% of total P2P lending, comes as stricter regulations, including limits on borrowing and lending, aim to stabilize the sector but also pose challenges to its growth.
Published on: December 16, 2024
India's cooperative banks' asset quality reflects regional economic realities. While some banks, particularly in less developed states, struggle with high NPAs exceeding 10%, the overall trend shows improvement. Regulatory measures by RBI and Nabard are yielding positive results, with bad asset ratios steadily declining, especially among urban cooperative banks.
Published on: December 16, 2024
LIC reported unclaimed maturity amounts of ₹880.93 crore in FY24, slightly up from the previous year. The government is employing various methods to reunite policyholders with their funds. Foreign Exchange Reserves dipped recently, while RBI cancelled the registration of thousands of NBFCs and ARCs.
Published on: December 16, 2024
Indian banks wrote off substantial loans totaling Rs 12.3 lakh crore over the past decade. Public sector banks led write-offs, particularly in recent years. However, write-offs declined to Rs 1.7 lakh crore in FY24. Banks are actively pursuing loan recovery through various measures. Despite write-offs, public sector banks reported record profits in FY24, reaching Rs 1.41 lakh crore.
Published on: December 16, 2024
The share of states in the bottom half of the market has gone up from 44% of the total borrowings in 2013-14 to 49% in 2023-24. Three states together account for more than half of all retail loans disbursed by banks, show the data.
Published on: December 16, 2024
Banks are struggling to meet SEBI's January 1st deadline for implementing a new cybersecurity framework. The extensive regulations require frequent audits, robust disaster recovery plans, and data storage within India. Banks have requested more time, citing the complexity of the rules and the need for system upgrades. Non-compliance could lead to penalties.
Published on: December 16, 2024
Karur Vysya Bank expanded its presence in Tamil Nadu by opening four new branches, increasing its total network to 862. These branches, located in Madurai, Tiruppur, Krishnagiri, and Chennai, will offer a full range of banking services.
Published on: December 15, 2024
Hinduja Group's IIHL anticipates finalizing the Reliance Capital acquisition by January, aiming to triple its BFSI business to USD 50 billion by 2030. Post-acquisition, IIHL plans to retain the existing RCAP management, divest most subsidiaries, and potentially pursue an IPO after two years. The acquisition involves a Rs 9,650 crore bid and a subsequent Rs 200 crore solvency boost.
Published on: December 15, 2024
Indian Public Sector Banks (PSBs) achieved a record net profit of Rs 1.41 lakh crore in FY24, with GNPA declining to 3.12% by September 2024. The first half of FY25 saw continued growth with a net profit of Rs 85,5206,000 crore. This success is attributed to improved asset quality, operational efficiency, and government support, including schemes promoting financial inclusion.
Published on: December 15, 2024
The Indian government's PMJJBY has provided life insurance coverage to over 21 crore beneficiaries, paying out Rs 17,211.50 crore in claims. Meanwhile, PMSBY has enrolled nearly 48 crore individuals in accident insurance, and PMJDY has over 54 crore accounts with deposits exceeding Rs 2.3 lakh crore.
Published on: December 14, 2024
Indian banks' bad loans dropped sharply. The NPA ratio fell to 2.67% in June 2024 from 11.18% in March 2018. The coverage ratio increased to 92.52% in June 2024. Public sector banks earned record profits. They earned Rs 1.41 lakh crore in 2023-24. Bank branches expanded significantly, reaching 160,501 by September 2024. Over 100,000 branches serve rural and semi-urban areas.
Published on: December 14, 2024
India's Unified Payments Interface (UPI) processed a staggering 15,547 crore transactions worth Rs 223 lakh crore between January and November 2024. UPI's global reach extends to seven countries, including France, marking its European debut.
Published on: December 14, 2024
CareEdge predicts rising credit costs for banks and microfinance companies, impacting profitability. Microfinance companies could see credit costs reach 6.5% of their loan book. India's GDP growth is projected at 6.5% in FY25, rising to 6.7% in FY26. The Reserve Bank is anticipated to cut policy interest rates by 50-75 basis points in 2025.
Published on: December 13, 2024
In-Solutions Global (ISG), backed by JP-Morgan, has received full payment aggregator authorisation from the Reserve Bank of India. This allows ISG, which already processes over 28 billion transactions annually for over 70% of Indian banks, to broaden its digital payment services, enhancing financial inclusion through faster and more secure transactions.
Published on: December 13, 2024
The Indian government is seeking parliamentary approval for an additional ₹44,143 crore in spending for 2024-25. Despite this, the government maintains it will meet its fiscal deficit target. Increased spending in defense, agriculture, and other areas will be offset by savings and reprioritization elsewhere. This supplementary demand is lower than last year's.
Published on: December 12, 2024
Indian banks saw a 10.6% rise in public deposits to ₹224.7 lakh cr between November 2023 and November 2024, matching the growth in credit. Both term and demand deposits achieved double-digit growth. This balanced growth follows regulatory concerns about potential overheating in retail credit, leading to a more sustainable credit-deposit ratio.
Published on: December 12, 2024
IRDAI is considering regulations to curb insurers' reliance on parent banks for bancassurance sales, often exceeding 90%. This follows concerns over misselling and aims to promote diversification through agency and digital channels, fostering a level playing field within the industry. The regulator encourages insurers to explore open architecture distribution models.
Published on: December 12, 2024
RBI has expressed concerns over fintech companies' aggressive lending practices, particularly to first-time buyers of used vehicles. These practices, including excessive top-up loans, are increasing borrower vulnerability and impacting lender balance sheets. The regulator has warned against high loan-to-value ratios and has taken action against some lenders for non-compliance.
Published on: December 12, 2024
State Bank of India (SBI) is securing a ¥30 billion ($197 million), five-year loan from Mitsubishi UFJ Financial Group Inc. The loan, arranged in India's Gujarat International Finance Tec-City, has a 60 basis point margin over TONA. This adds to the surge in Samurai loans as Asian borrowers seek lower financing costs compared to dollar-denominated options.
Published on: December 12, 2024
The Finance Ministry urged banks to expedite bad loan resolutions through NARCL and NCLT by minimizing delays. An integrated portal is being developed for seamless information flow on NCLT cases. NARCL has acquired 22 accounts worth ₹95,711 crore and indirectly resolved 28 accounts worth ₹1.28 lakh crore.
Published on: December 12, 2024
