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Banking/Finance-Industry-Economic Times
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
MFIN has tightened loan underwriting guidelines to address borrower over-indebtedness. Uniform treatment measures will help lenders with a robust policy for bullet repayments and missing EMIs. This follows RBI's mandate to ensure monthly repayment obligations don't exceed 50% of household income. Analysts warn tightened practices may impact asset quality and loan growth.
Published on: October 8, 2024
ICICI Bank and PhonePe have partnered to provide instant credit on UPI for pre-approved customers. The service offers up to Rs 2 lakh credit with a 45-day repayment period. This facility, aimed at festive shopping needs, allows users to make payments for high-value items seamlessly and securely using any UPI payment app.
Published on: October 8, 2024
State Bank of India has extended its Amrit Kalash and Amrit Vrishti fixed deposit schemes until March 31, 2025. Amrit Kalash offers 7.10 percent interest for 400 days, while Amrit Vrishti provides 7.25 percent for 444 days. Senior citizens receive an extra 50 basis points. These schemes come after the Reserve Bank of India's recent directive to narrow the deposit-credit growth gap.
Published on: October 7, 2024
Housing finance companies propose revamping the Credit Risk Guarantee Fund Trust for Low Income Housing. They suggest increasing the guarantee cover for home loans to ₹25 lakh from the current ₹5 lakh. This renewal aims to include more low-income customers and boost affordable housing in 124 districts. The government's response is awaited.
Published on: October 7, 2024
The Reserve Bank of India has rejected Religare Enterprises' attempt to appoint Rakesh Asthana to its board. This followed a complaint from the Burman family, who hold a significant stake in REL, citing procedural irregularities. The dispute has escalated to legal actions, with the Delhi High Court involved. The company's management is amid a power tussle with the Burman family.
Published on: October 7, 2024
Zaggle Prepaid Ocean Services in Mumbai has appointed Virat Sunil Diwanji, the former Head of Consumer Banking at Kotak Mahindra Bank, as an Additional Director on its board. Diwanji will join the board from October 4, 2024. Diwanji has over 30 years of experience, which will support Zaggle's expansion efforts.
Published on: October 7, 2024
HDFC Bank, India's largest private sector lender, experienced an unscheduled downtime in its net-banking and mobile banking services, affecting NEFT and RTGS transactions for over an hour. The bank quickly resolved the issue and continues to upgrade its IT technology following RBI-imposed restrictions lifted in March 2022.
Published on: October 7, 2024
Ravindra Kumar Kundu has started his five-year term as Managing Director of Cholamandalam Investment and Finance Company. Appointed in July, Kundu brings over 36 years of experience in the automobile and financial services industry. He has been with the company for 24 years. He holds a Commerce degree and has completed several prestigious management programs.
Published on: October 7, 2024
SBM Bank India has named Prakash Jaiswal as head of corporate banking and Nikhil Rajadhyaksha as head of Retail Banking. Jaiswal previously worked at HSBC Bank India, while Rajadhyaksha was with Kotak Securities. SBM Bank India operates 17 branches across the country, including a new one in Surat.
Published on: October 7, 2024
Public sector banks saw stronger credit growth compared to deposit growth for the September quarter. Bank of India, Union Bank of India, and Indian Bank reported credit growth between 10% to 14%, while deposit growth ranged from 8% to 10%, according to provisional numbers.
Published on: October 7, 2024
The International Finance Corporation is lending $500 million to Axis Bank to develop blue finance and green projects in India. This partnership aims to enhance water and energy efficiency and support climate-friendly investments in sectors like wastewater management and green buildings. Axis Bank targets significant growth in its climate and sustainable finance portfolio by 2030.
Published on: October 7, 2024
The Insurance Regulatory and Development Authority of India (Irdai) is encouraging insurance companies, especially those operating for over a decade, to go public. By engaging with senior executives, Irdai aims to enhance corporate governance and unlock greater value through public listings.
Published on: October 6, 2024
The Indian government seeks insights from the private equity and venture capital sector on global tax practices for fund managers' carried interest as it examines the imposition of GST on such earnings. A recent Supreme Court decision helps facilitate ongoing discussions about aligning with international tax norms.
Published on: October 6, 2024
Punjab CM Bhagwant Mann announced a new loan scheme from state cooperative banks for farmers to buy crop residue management machines. The scheme offers 80% subsidy to PACs and 50% subsidy to farmers on equipment purchases. It aims to reduce paddy straw burning by making rural credit more accessible.
Published on: October 6, 2024
State Bank of India plans to recruit up to 10,000 employees this financial year, focusing on technology roles like data scientists and network operators, alongside general banking staff. SBI will also open 600 new branches nationwide to enhance customer service.
Published on: October 6, 2024
Public sector banks are expected to see a slight quarterly dip in profits for Q2 FY25, with a 0.6% QoQ decline but a 17.2% YoY increase, according to Motilal Oswal. Private sector banks forecast modest growth, projecting a 12% YoY increase in Pre-Provision Operating Profit and 5% in PAT.
Published on: October 6, 2024
Bandhan Bank's total business grew by 24.6% in Q2 of the current financial year, reaching Rs 2,73,163 crore. Loans and advances stood at Rs 1,30,652 crore, and deposits at Rs 1,42,511 crore. The collection efficiency ratio was 98.2%. Interim MD&CEO Ratan Kumar Kesh's tenure was extended by a month from October 10.
Published on: October 6, 2024
J&K Bank officers from the AIJKBOF staged a day-long hunger strike against the bank management's high-handed actions and anti-employee policies. They protested the staff accountability policy, work-life imbalance, and frozen variable pay. Officers criticized the management's failure to communicate and raised concerns over the exploitation of apprentices instead of filling vacancies.
Published on: October 5, 2024
Despite a growing startup ecosystem, only 8.2% of startups in India undergo incubation, with 10% of incubators supporting 98% of these startups. The report emphasizes the need for more incubators and improved performance, especially outside Tier I cities and in underrepresented sectors.
Published on: October 5, 2024
State Bank of India classified MTNL's loan accounts as sub-standard non-performing assets due to non-payment since June 30. With a total outstanding of Rs 325.52 crore, SBI warned legal actions if dues remain unpaid, while MTNL seeks government assistance for debt clearance.
Published on: October 4, 2024
The Reserve Bank of India introduces draft guidelines to prevent banks from leveraging group entities to sidestep restrictive norms. Banks are restricted from investing in highly leveraged funds and must get prior approval for transactions and new activities involving subsidiaries.
Published on: October 4, 2024
India's central bank mandates that group entities of banks cannot bypass parent guidelines for restricted business activities. Banks need RBI's prior approval for new group activities. No bank can hold over 30% of equity in any company with its group entities. Small finance banks and payments banks must follow licensing conditions.
Published on: October 4, 2024
Published on: October 4, 2024
Several private sector banks in India saw deposit growth outpace credit growth in the September quarter. HDFC Bank, Yes Bank, and CSB Bank reported notable increases in their deposit bases. Meanwhile, non-bank lenders like Bajaj Finance and Mahindra Finance showed mixed results in asset management and loan disbursements.
Published on: October 4, 2024
Union Home and Cooperation Minister Amit Shah urges ADC Bank to take on health, nutrition, and education services in Ahmedabad district, with support from other cooperative entities. He highlights the establishment of the Ministry of Cooperation by PM Modi, emphasizing its role in promoting symmetrical development across the cooperative sector.
Published on: October 4, 2024
HDFC Bank, India’s largest private lender, added over Rs 1.2 lakh crore in deposits in the September quarter, growing its deposit base by 15.1% to Rs 25 lakh crore. CASA deposits grew by 8%, while time deposits increased by 19.3%. Total advances grew by 7%, driven by commercial and rural banking, despite a decline in corporate loans.
Published on: October 4, 2024
Moody’s Ratings forecasts ongoing growth for private credit markets in the Asia-Pacific region, propelled by rising financing needs in major economies like India and China. The private credit assets under management have increased significantly, doubling to approximately USD 120 billion by the end of 2023. This growth is driven by demand from various sectors, including real estate and infrastructure, while institutional investors with higher risk appetites lead the investment landscape.
Published on: October 4, 2024
Small finance banks and micro-finance lenders are capping the number of active loans to a borrower at four to reduce default risk. They are taking this step due to rising stress in unsecured loans. The RBI has also raised concerns about high levels of delinquencies and the end use of loan funds.
Published on: October 4, 2024
HDFC Bank has securitised loan pools worth Rs 24,600 crore in nine months as part of a strategic initiative, with Rs 19,200 crore in the September quarter alone. This move aims to normalize the loan-to-deposit ratio more quickly, affecting loan growth and financial metrics such as NIM and RoA.
Published on: October 4, 2024
Japan’s MUFG has re-entered the race to acquire a majority stake in Yes Bank after its proposal to invest in HDB Financial was rejected. MUFG has submitted a non-binding offer and is conducting due diligence, negotiating mainly with Yes Bank and SBI.
Published on: October 4, 2024
Banks in India are employing doorstep agents to capture photos and videos of mortgaged assets for auctions on eBKray, a platform that lists and manages NPAs. PSB Alliance, working with 12 public sector banks, enhances data quality and recently partnered with Amazon Web Services for cloud services.
Published on: October 3, 2024
Indian mortgage lenders anticipate that new guidelines for the affordable home subsidy plan under the Pradhan Mantri Awas Yojana (PMAY) will plug fund leakages and ensure benefits reach more end-users. The scheme will now offer a reduced total subsidy of ₹1.80 lakh over five years, aiming to curb misuse by builders and brokers.
Published on: October 3, 2024
Small finance banks and microfinance lenders are setting a cap of four live loans per borrower. This is a precautionary step to avoid defaults due to unsecured loan stress. The RBI has already raised concerns about rising delinquency levels and multiple live loans, prompting this move. Utkarsh Small Finance Bank follows this four-loan cap policy.
Published on: October 3, 2024
The weighted average lending rate (WALR) of private banks saw a decline of 15 basis points in August after the average rates had seen a rise of 18 basis points in June. For the same August period, public sector banks increased WALR by 5 basis points. The WALR on fresh loans was flat sequentially in August 2024, RBI data showed.
Published on: October 3, 2024
The unsecured business loan market is facing stress in asset quality with rising delinquencies, higher credit costs, and increased write-offs due to competitive lending, overleveraging of borrowers, and cash flow issues in specific segments, India Ratings reports.
Published on: October 3, 2024
By the end of September, the gap between credit and deposit growth in India's banking system has narrowed to 162 basis points from 220 basis points. This change reflects regulatory efforts to increase deposits while de-risking the financial system, as demand for loans continues to rise.
Published on: October 3, 2024
Google collaborates with Muthoot Finance to offer gold-backed loans via GPay and plans to roll out its AI assistant, Gemini Live, in Hindi and eight other Indian languages. Additionally, Google is integrating Beckn-enabled open networks and launching clean energy projects in partnership with Adani Group and CleanMax.
Published on: October 3, 2024
Bank of Baroda announces plans to sell its Oman operations to Bank Dhofar as part of its strategy to streamline foreign operations. This move follows previous decisions to close branches in China and sell its stake in the Trinidad and Tobago subsidiary.
Published on: October 3, 2024
ICICI Bank has partnered with MakeMyTrip to launch a premium co-branded credit card aimed at travel enthusiasts, offering rewards like myCash, complimentary MMTBLACK Gold membership, and various discounts on bookings. The card, available on Mastercard and RuPay, aims to enhance the travel experience for Indian consumers.
Published on: October 3, 2024
Banks are boosting credit assessment processes, utilizing social media analytics to evaluate Jan Dhan account holders for consumption loans. With an emphasis on productive lending and government schemes, they remain cautious amid rising personal loan stress and RBI's warning on unsecured loan growth.
Published on: October 2, 2024
The DGGI has issued over 300 show-cause notices to company officials for wrongfully availing input tax credit. Penalties up to 100% have been imposed. Notices target top management where their role in tax evasion is established. Industry argues penalties should only apply in exceptional cases. Recipients challenge the notices in court.
Published on: October 2, 2024
Lenders in India are seeing negative impacts from extreme weather conditions, such as heatwaves, floods, and expected harsh winters, on their loan portfolios, affecting collection efficiency and sales. Financial institutions stress the need for climate-specific solutions and structural reforms to mitigate these risks.
Published on: October 2, 2024
Gold loans dominate NBFC loan sanctions in Q1, increasing by 26% year-on-year to Rs 79,218 crore, while personal loans fell by 4% due to RBI's higher risk weights on unsecured loans. RBI warned NBFCs of regulatory action for violations in gold lending practices observed during onsite examinations.
Published on: October 2, 2024
Non-banking financial companies (NBFCs) are looking to fund their growth using methods beyond traditional bank loans. Crisil Ratings highlights that NBFCs are turning to non-convertible debentures, commercial papers, foreign currency borrowings, and securitisation. This shift is due to increased risk weights on bank lending. Diversifying funding is crucial for NBFCs to manage costs and sustain growth.
Published on: October 2, 2024
Chandra Shekhar Ghosh is now the chairman and full-time executive director of Bandhan Financial Services. The decision was approved by shareholders including IFC and Sidbi. Ghosh took on this role after retiring from Bandhan Bank as managing director. Having founded the Bandhan group 24 years ago, Ghosh aims to contribute strategically to the group's growth.
Published on: October 2, 2024
SBI plans to open 600 branches this financial year, targeting emerging areas and large residential townships. The bank aims to improve customer reach and offers innovative products like a combo of recurring deposits and SIP. SBI also focuses on deposit mobilization through extensive outreach programs. SBI has a network of over 22,500 branches across India.
Published on: October 2, 2024
Ajay Banga, President of the World Bank, intends to shift the institution’s focus toward being a Knowledge Bank. He is addressing issues like climate change and AI governance, emphasizing fair climate policies and bridging the AI divide in developing markets. He stresses the need for measurable outcomes in initiatives, such as improving girls’ lives through education.
Published on: October 2, 2024
A new breed of policies now caters to adventurous and niche activities like golfing and scuba diving besides offering emergency coverage for pre-existing conditions, home-to-airport coverage, upgrading to business class due to health reasons and even pet care.
Published on: October 1, 2024
