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Banking/Finance-Industry-Economic Times
Indian banks, including HDFC and Kotak Mahindra, are grappling with increased credit costs and challenges in attracting customer deposits as people shift towards equity funds. HDFC aims to improve its high loan-deposit ratio, while Kotak Mahindra faces restrictions impacting its profitability.
Published on: October 18, 2024
The Reserve Bank of India has banned four finance companies, including Navi Finserv and DMI Finance, from issuing new loans due to excessive interest rates. This follows warnings about aggressive growth practices. The companies must submit remedial actions to the RBI for review to resume their loan services.
Published on: October 18, 2024
Axis Bank faces a challenging environment with tough deposit growth and asset quality issues, although it posted an 18% rise in net profit for the September quarter. Despite steady net interest income and NIM, asset quality concerns and increased provisions remain significant challenges.
Published on: October 17, 2024
Weaver Services, a non-bank lender formed by former HDFC executives, secured Rs 800 crore from private equity funds for expansion and acquiring Capital India Home Loans. The company plans to launch home loan products for self-employed individuals in Tier 2 and Tier 3 towns after regulatory approvals and acquisition completion.
Published on: October 17, 2024
Banks' efforts to mobilise deposits by the quarter-end helped reduce the credit deposit ratio to 78.9 percent as of October 04. Despite this, year-on-year deposit growth at 11.8 per cent continues to lag behind credit growth of 12.8 percent, signaling future challenges.
Published on: October 17, 2024
Punjab and Sind Bank (PSB) has notified that Mahanagar Telephone Nigam Limited (MTNL) accounts are now classified as Non-Performing Assets (NPA), effective October 8, 2024. This announcement, made in compliance with SEBI regulations, was confirmed in a statement released by MTNL on October 16, 2024.
Published on: October 17, 2024
The Reserve Bank of India has directed Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and Navi Finserv Limited to halt loan sanction and disbursement starting October 21, 2024, due to concerns over their excessive interest rates and non-compliance with established financial regulations.
Published on: October 17, 2024
Axis Bank became the fourth largest credit card issuer in Q2 FY25, with a 14% increase in Cards in Force. Credit card transactions surged, especially in lifestyle, fashion, and electronics. However, millennial defaults are rising, with outstanding debt reaching substantial highs.
Published on: October 17, 2024
Multiples appoints Rahul Chawla, a senior executive from Deutsche Bank, as the managing director for credit strategy. Chawla, with nearly three decades of experience and extensive expertise in structured finance, is set to lead Multiples' new venture into the credit investing space.
Published on: October 17, 2024
National Payments Corporation of India (NPCI) has teamed up with The Times of India to launch a national campaign on digital payment safety. Using the iconic cartoon character Common Man, the campaign aims to educate users about different types of digital payment frauds and provide tips for secure transactions, especially focusing on UPI payments.
Published on: October 16, 2024
The Indian payments industry is projected to grow to $49 trillion in value by 2028 from $30 trillion in 2023, with transaction volumes expected to increase to 434 billion. Revenue growth in this sector is forecasted at 11%, with credit cards and fund transfers leading the expansion.
Published on: October 16, 2024
The Supreme Court clarifies that banks can claim deductions for broken period interest on securities treated as stock-in-trade. The court rejects the income tax department's view that such interest should be considered capital expenditure, upholding the Bombay High Court's decision.
Published on: October 16, 2024
Capital India Finance Ltd has sold its housing finance subsidiary, Capital India Home Loans Limited, to Weaver Services Private Limited for Rs 267 crore. Weaver will raise up to Rs 800 crore from private equity funds to finance this acquisition. The focus will be on innovative home loan products for self-employed individuals in Tier 2 and Tier 3 towns.
Published on: October 16, 2024
Kotak Mahindra Bank, aiming to be India’s third largest private sector lender by 2030, faces significant M&A risks and integration challenges, Bernstein Research a part of the Société Générale group has said. A 7% profit growth over Axis Bank appears elusive organically, prompting potential inorganic growth through acquisitions like IDBI Bank or smaller banks.
Published on: October 16, 2024
The Competition Commission of India approved Central Bank of India's acquisition of 24.91% and 25.18% equity stakes in Future Generali India Insurance and Future Generali India Life Insurance, respectively, through the Insolvency and Bankruptcy Board of India's resolution process. This followed Central Bank of India's successful bid for debt-ridden Future Enterprises Ltd's assets.
Published on: October 15, 2024
Biz2X, a subsidiary of Biz2Credit, has surpassed Rs 9,000 crore in loan disbursements, driven by its AI-integrated platform, DigiKred. The company expects to facilitate an additional Rs 5,000 crore by FY2025. Strategic collaborations and expansions into UAE and Saudi Arabia bolster their growth.
Published on: October 15, 2024
Acko appoints founding member Sandip Goenka as CEO of its new life insurance business. Goenka, with over two decades of experience, will develop product offerings and ensure long-term growth, operational efficiency, and financial performance. His leadership signals Acko's commitment to expanding their life insurance sector presence.
Published on: October 15, 2024
National Insurance Company faces an ₹8,000 crore solvency shortfall, with a negative 0.49% solvency margin against the regulatory minimum of 1.5%. The insurer plans to address the gap by liquidating key assets, including stakes in Agriculture Insurance Company and India International Insurance Singapore, pending necessary approvals.
Published on: October 14, 2024
During this year's festive season sales, there was a significant rise in the usage of credit cards and credit-based payment instruments such as pay-later products, with a recorded increase of 35-50% in transactions compared to the previous year, particularly in lifestyle, fashion, and electronics.
Published on: October 14, 2024
The Delhi High Court has directed the CBI to file a status report on Kapil Wadhawan's bail plea concerning the DHFL bank loan scam. The CBI is to address objections regarding the petition's maintainability, with further hearings set for November 7.
Published on: October 14, 2024
PhonePe launches a new insurance plan priced at ₹9 that protects against firecracker-related accidents during Diwali. The plan offers coverage of up to ₹25,000 for a 10-day period and includes hospitalisation and accidental death expenses. Coverage starts immediately for purchases from October 25, 2024, onward.
Published on: October 14, 2024
RBI Governor Shaktikanta Das urged banks to fortify their liquidity buffers against potential threats and cautioned about the financial stability risks posed by AI and tech provider concentration. He emphasized the importance of risk mitigation measures and the need for emerging economies to strengthen policy frameworks amidst monetary policy divergences affecting capital flows and exchange rates.
Published on: October 14, 2024
Bank margins may remain under pressure due to higher deposit costs. Loan growth trends will be monitored, especially in the unsecured retail segment. Analysts expect slower growth and higher credit costs for banks with more exposure to microfinance and unsecured loans. Earnings growth for private and PSU banks may vary between 4.1% and 17.2% year-on-year.
Published on: October 13, 2024
Hospitals in India introduce additional charges, such as disinfection fees and peak operation theatre charges, leading to a 20% rise in medical costs. Insurers struggle as previously bundled services are unbundled, causing unpredictability in healthcare expenses and potential increases in insurance premiums.
Published on: October 13, 2024
Banks have requested the RBI to increase the deposit insurance cover for senior citizens and reduce the premium for insuring other retail deposits. This follows an internal meeting of bankers. The current insurance cover is ₹5 lakh per depositor. Any changes will need Parliament's approval. Discussions with the RBI and government are ongoing.
Published on: October 13, 2024
Wealthy Indians are uncertain about investments abroad after a directive from the International Financial Services Centres Authority. It restricts fixed deposit terms in GIFT City to under 180 days, conflicting with Reserve Bank of India guidelines. This confusion affects funding to offshore banks and the liberalised remittance scheme for high-net-worth individuals.
Published on: October 13, 2024
Indian Overseas Bank has launched retail loan processing centres in eight cities, including Chennai and Delhi, to streamline loan approvals and reduce turnaround times. Equipped with digital technologies, these centres aim to enhance financial accessibility and support the bank's growth in the retail segment. The bank also unveiled an ATM kiosk at Chennai's Central Railway Station.
Published on: October 13, 2024
SBI plans to increase the threshold of the instant loan scheme for MSMEs from Rs 5 crore. SBI aims to simplify MSME credit by leveraging digital tools and reducing the need for collateral. Additionally, SBI intends to open 600 new branches this financial year, enhancing its extensive network.
Published on: October 13, 2024
India's life insurance sector experienced a 14% year-on-year growth in new premium collections last month. Private insurers saw a 16% increase, outpacing LIC's 12% rise. Among private players, ICICI Prudential Life and Max Life recorded notable growth. This comes amid regulatory changes in surrender charges and increased interest in unit-linked insurance plans.
Published on: October 11, 2024
Housing finance companies are anticipating a delay in the festive season demand surge due to pending government guidelines on the PMAY and Affordable Housing Refinance Scheme. The PMAY subsidy aims to provide ₹1.80 lakh for home loans up to ₹25 lakh, while the refinance scheme offers a 5% interest rate for housing loans disbursed in the past year.
Published on: October 11, 2024
Small finance banks' return on assets is projected to drop to 1.7% this fiscal year from 2.1% due to lower net interest margins and higher credit costs. However, they will still outperform the overall banking system. Rising delinquencies in microfinance and unsecured segments will also impact profitability.
Published on: October 11, 2024
Life insurers in New Delhi reported a 14% increase in new business premiums in September, collecting Rs 35,020 crore compared to Rs 30,716 crore last year. The first half of FY25 saw a 19% growth in premiums. LIC led with a 25% rise, while the private sector grew 12%.
Published on: October 11, 2024
The RBI has instructed all banks and non-bank payment system providers to review and modify their digital payment systems for better accessibility to disabled persons. PSPs must refer to the Ministry of Finance’s Accessibility Standards and ensure security is not compromised. Details of changes must be reported to RBI within a month.
Published on: October 11, 2024
Reliance's JioFinance App, launched on May 30, 2024, now offers diverse financial products including loans and digital savings accounts. Over six million users have provided feedback, enhancing the app's user experience. The JioFinance app also includes seamless UPI payments and insurance plans, aiming to democratize financial services in India.
Published on: October 11, 2024
Irdai is intensifying scrutiny of cybersecurity lapses in the insurance sector following a major data breach at Star Health Insurance. Over 31 million customers' data was compromised. The regulator has mandated an extensive audit of Star Health's cybersecurity framework. The audit aims to identify control gaps and recommend measures to prevent future breaches.
Published on: October 10, 2024
Banks raise alarms over fraudulent entities impersonating them in text messages to dupe customers. They seek intervention from the finance ministry, TRAI, and telecom service providers, and plan to approach the RBI to address compliance challenges with cybersecurity advisories.
Published on: October 10, 2024
Partha Pratim Sengupta will become the new managing director and CEO of Bandhan Bank. The Reserve Bank of India has approved his appointment for three years starting no later than November 10, 2024. The bank also completed a forensic audit on its insurance claims, resulting in a payout of Rs 1,231.29 crore.
Published on: October 10, 2024
The Reserve Bank requires Asset Reconstruction Companies (ARCs) to join all credit information companies and submit relevant data in a standardized format by January 1, 2025, aligning their norms with banks and NBFCs. Credit institutions must continue reporting credit information until loan completion or winding up.
Published on: October 10, 2024
The Reserve Bank of India has directed banks, NBFCs, and other entities to utilize all relevant information sources for risk assessments. This measure aims to mitigate money laundering, terrorist financing, and proliferation financing risks. It highlights the importance of an enterprise-level risk assessment and advises against a siloed approach to ensure effective risk management.
Published on: October 10, 2024
India's UPI transaction volume surged 52% year-on-year to 78.97 billion in H1 2024, with the transaction value rising by 40%. PhonePe led as the top UPI app. Average ticket size dropped by 8%, despite substantial growth in use for micro-transactions in sectors such as e-commerce and government services.
Published on: October 10, 2024
India's largest health insurer, Star Health, investigates a claim suggesting its CISO, Amarjeet Khanuja, may have facilitated a customer data leak involving medical records disseminated by a hacker on Telegram. Despite the allegation, no evidence implicating Khanuja has been found yet.
Published on: October 10, 2024
The Reserve Bank of India advises non-banking financial companies, including microfinance and housing finance institutions, to prioritize compliance, adhere to fair practices, and sincerely address customer grievances. While monitoring these entities' exposures and risk practices, the RBI emphasizes the need for self-correction to avoid systemic risks, underscoring potential financial stability concerns with excessive returns and high indebtedness.
Published on: October 9, 2024
The Reserve Bank of India maintains rates and changes its policy stance to 'neutral', indicating confidence in managing inflation and promoting robust growth. Bankers expect future rate cuts depending on the inflation trend. Enhanced UPI limits and creation of a climate risk system are also highlighted.
Published on: October 9, 2024
Manoj Kumar Dubey has been appointed as CEO, Chairman, and Managing Director of Indian Railways Financial Corporation for five years. A distinguished IRAS officer from the 1993 batch, Dubey introduced significant digital and PPP initiatives. His tenure saw vast improvements in financial systems and corporate structure, promoting growth and innovation.
Published on: October 9, 2024
As India's NBFC sector grows rapidly, driving financial inclusion, some of these companies are taking risky paths to growth through exuberant lending and pushing credit growth through targets to employees.
Published on: October 9, 2024
The National Company Law Tribunal in Ahmedabad approved ICICI Bank’s plan to delist ICICI Securities Ltd. Two objections to the delisting were dismissed. Earlier, the NCLT Mumbai also approved the delisting scheme. ICICI Bank argued that the objections didn't meet the required shareholding threshold. The delisting was approved by a significant majority of ICICI Securities' shareholders.
Published on: October 9, 2024
Zarin Daruwala, CEO of Standard Chartered India & South Asia, will retire in March after over eight years in the role. Turning 60 in February, she has significantly grown the India franchise with a focus on corporate, investment, and retail banking. Her successor's search has begun.
Published on: October 9, 2024
During the recent Monetary Policy Committee meeting, RBI Governor Shaktikanta Das expressed concerns about some Non-Banking Financial Companies (NBFCs) aggressively pursuing growth without proper administration. He advised them to review their target-based compensation structures and assess their exposures in unsecured loans, emphasizing the need for robust underwriting and monitoring standards.
Published on: October 9, 2024
Mumbai-based EPS is backed by investors like the UK's Apis Partners and Dutch Entrepreneurial Development Bank FMO. The licence has made it the country's fifth white-label ATM operator alongside Tata Communications Payment Solutions, India1 Payments, Hitachi Payment and Vakrangee. The RBI had last issued this licence in 2014 to India1 Payments. Earlier, three other companies had surrendered their licences.
Published on: October 8, 2024
The Competition Commission of India approved JM Financial's acquisition of a 43 percent stake in JM Financial Credit Solutions. JM Financial Credit Solutions operates in wholesale lending with a focus on real estate and corporate financing. The move will also consolidate their holdings in the wholesale debt syndication and distressed credit businesses to achieve higher risk-adjusted returns.
Published on: October 8, 2024
