RBI to bring in discussion paper on expected loan loss provisioning

“As a further step towards converging with globally accepted prudential norms, it is proposed to adopt expected loss approach for loss allowances required to be maintained by banks in respect of their exposures,” RBI governor Shaktikanta Das said. “As a first step, a discussion paper on the various aspects of the transition will be issued shortly.”

source https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-to-bring-in-discussion-paper-on-expected-loan-loss-provisioning/articleshow/94553758.cms

BANKING

“As a further step towards converging with globally accepted prudential norms, it is proposed to adopt expected loss approach for loss allowances required to be maintained by banks in respect of their exposures,” RBI governor Shaktikanta Das said. “As a first step, a discussion paper on the various aspects of the transition will be issued shortly.”

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Reserve Bank of India proposes lenders to adopt expected loss-based approach for loan loss provisioning

"The inadequacy of the incurred loss approach for provisioning by banks and its procyclicality, which amplified the downturn following the financial crisis of 2007-09, has been extensively documented. One of the major elements of the global response to these findings have been a shift to expected credit loss (ECL) regime for provisioning," the central bank said in the statement on developmental and regulatory policies.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/reserve-bank-of-india-proposes-lenders-to-adopt-expected-loss-based-approach-for-loan-loss-provisioning/articleshow/94552219.cms

BANKING

"The inadequacy of the incurred loss approach for provisioning by banks and its procyclicality, which amplified the downturn following the financial crisis of 2007-09, has been extensively documented. One of the major elements of the global response to these findings have been a shift to expected credit loss (ECL) regime for provisioning," the central bank said in the statement on developmental and regulatory policies.

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ED freezes ₹21 crore in OctaFX accounts over 'Fx violation'

The ED has been probing the platform for alleged illegal online forex trading through international brokers. According to the agency, OctaFX collected funds from users and then channelised the money through dummy entities.

source https://economictimes.indiatimes.com/industry/banking/finance/ed-freezes-21-crore-in-octafx-accounts-over-fx-violation/articleshow/94542830.cms

BANKING

The ED has been probing the platform for alleged illegal online forex trading through international brokers. According to the agency, OctaFX collected funds from users and then channelised the money through dummy entities.

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BANKING

​​​ State Bank of India (SBI) in its plea filed before the Allahabad bench of NCLT has claimed a total default of Rs 6,893.15 crore as on September 15, 2022 from Jaiprakash Associates Ltd (JAL). Besides, SBI has also proposed the name of Bhuvan Madan as interim resolution professional of the company.

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PSU banks to start drive from Oct 2 to fill backlog vacancies of scheduled castes: NCSC chief

Sampla said he, along with the finance minister, reviewed the various measures taken by PSBs in giving credit to persons belonging to a scheduled caste community and their welfare in terms of reservation, backlog vacancies, functioning of welfare and grievance redressal mechanism, and other issues.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/psu-banks-to-start-drive-from-oct-2-to-fill-backlog-vacancies-of-scheduled-castes-ncsc-chief/articleshow/94536492.cms

BANKING

Sampla said he, along with the finance minister, reviewed the various measures taken by PSBs in giving credit to persons belonging to a scheduled caste community and their welfare in terms of reservation, backlog vacancies, functioning of welfare and grievance redressal mechanism, and other issues.

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NBFCs stare at a liquidity squeeze amid debt fund outflow, low bank funds

With banks witnessing a multi-year high credit demand and chasing deposits, the lending cost for non-bank lenders with 3-5 year corporate bonds yields have risen 120-160 basis points since March.

source https://economictimes.indiatimes.com/industry/banking/finance/nbfcs-stare-at-a-liquidity-squeeze-amid-debt-fund-outflow-low-bank-funds/articleshow/94518396.cms

BANKING

With banks witnessing a multi-year high credit demand and chasing deposits, the lending cost for non-bank lenders with 3-5 year corporate bonds yields have risen 120-160 basis points since March.

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PSBs plan to set up big data and analytics verticals

In the next one year, public sector banks will also roll out digital-only products and services, designed for minimum data entry, automated checks, and underwriting for retail customers and micro, small and medium enterprises.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/psbs-plan-to-set-up-big-data-and-analytics-verticals/articleshow/94517835.cms

BANKING

In the next one year, public sector banks will also roll out digital-only products and services, designed for minimum data entry, automated checks, and underwriting for retail customers and micro, small and medium enterprises.

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Airtel Payments Bank to install 1.5 lakh micro ATMs this fiscal

"Micro ATMs will be rolled out in a phased manner. Initially, the bank will place 1,50,000 units in Tier II cities and semi-urban regions. These regions typically have a high demand for cash withdrawal services but limited access to ATMs," the company said in a statement.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/airtel-payments-bank-to-install-1-5-lakh-micro-atms-this-fiscal/articleshow/94511873.cms

BANKING

"Micro ATMs will be rolled out in a phased manner. Initially, the bank will place 1,50,000 units in Tier II cities and semi-urban regions. These regions typically have a high demand for cash withdrawal services but limited access to ATMs," the company said in a statement.

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India doesn't need so many public sector banks, says former SBI chief

India needs 'fewer' but stronger Public Sector Banks (PSBs), and the smaller ones could be privatised or merged, former SBI chief Arundhati Bhattacharya has said. She doesn't really believe that we need so many public sector banks either, the number of PSBs could be decreased. Some of them could be privatised said Bhattacharya, who is currently the chairperson and CEO of Salesforce India.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/india-doesnt-need-so-many-public-sector-banks-says-former-sbi-chief/articleshow/94507446.cms

BANKING

India needs 'fewer' but stronger Public Sector Banks (PSBs), and the smaller ones could be privatised or merged, former SBI chief Arundhati Bhattacharya has said. She doesn't really believe that we need so many public sector banks either, the number of PSBs could be decreased. Some of them could be privatised said Bhattacharya, who is currently the chairperson and CEO of Salesforce India.

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Merchants seek wider testing of recurring payments

Without directly seeking an extension, the Merchant Payments' Alliance of India (MPAI) requested the RBI to mandate system participants to demonstrate the same level of success rate in token and card-based payments in a letter dated September 26. The letter also requests that all existing e-mandates based on card details be immediately transferred to tokens.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/merchants-seek-wider-testing-of-recurring-payments/articleshow/94490396.cms

BANKING

Without directly seeking an extension, the Merchant Payments' Alliance of India (MPAI) requested the RBI to mandate system participants to demonstrate the same level of success rate in token and card-based payments in a letter dated September 26. The letter also requests that all existing e-mandates based on card details be immediately transferred to tokens.

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Banks are relying on non-deposit borrowings to meet rising loan demand

Such borrowings which are in addition to interbank and RBI borrowings essentially comprising various kinds of bonds raised from the market have doubled to Rs 4.95 lakh crore in early September from Rs 2.43 lakh crore a year ago, according to the latest Reserve Bank data.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/banks-are-relying-on-non-deposit-borrowings-to-meet-rising-loan-demand/articleshow/94487360.cms

Asmita Patel - The She-Wolf of the Stock Market, Simplifying Trading Education Globally

source https://economictimes.indiatimes.com/industry/banking/finance/asmita-patel-the-she-wolf-of-the-stock-market-simplifying-trading-education-globally/articleshow/94472107.cms

BANKING

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Lenders offer to sell their Reliance Naval loans to NARCL

The National Asset Reconstruction Co (NARCL), is in the process of giving a binding offer to the lenders, one of the persons cited above said. "Considering the judicial delay in getting a plan approved, lenders have approached NARCL to acquire the loans of the shipbuilding company," said an executive at one of the lenders. "If NARCL acquires it, banks will receive 15% of the consideration upfront."

source https://economictimes.indiatimes.com/industry/banking/finance/banking/lenders-offer-to-sell-their-reliance-naval-loans-to-narcl/articleshow/94463374.cms

Insurers may get to invest in non-dividend paying firms

Under the existing norms, only investment in listed companies that have paid a minimum 10% dividend for at least two consecutive years immediately preceding can be included in the approved category.

source https://economictimes.indiatimes.com/industry/banking/finance/insure/insurers-may-get-to-invest-in-non-dividend-paying-firms/articleshow/94463252.cms

BANKING

Under the existing norms, only investment in listed companies that have paid a minimum 10% dividend for at least two consecutive years immediately preceding can be included in the approved category.

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The bank that facilitated Iran trade back in focus as India-Russia trade expands

The bank has received the necessary approval from the regulator -- the Reserve Bank of India -- to open a special rupee vostro account, Soma Sankara Prasad, managing director and chief executive officer at UCO Bank, told Bloomberg News in a phone interview.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/the-bank-that-facilitated-iran-trade-back-in-focus-as-india-russia-trade-expands/articleshow/94459831.cms

ETBSFI CXO Conclave: Union Bank of India ED Nitesh Ranjan on power of digital lending

source https://economictimes.indiatimes.com/industry/banking/finance/banking/etbsfi-cxo-conclave-union-bank-of-india-ed-nitesh-ranjan-on-power-of-digital-lending/videoshow/94453256.cms

Gateway Partners sees over $1 bn investment potential in India over 5-10 years

"Over a billion US dollars over the next five to 10 years," V Shankar, co-founder and CEO of Gateway Partners said on Monday when asked about his investment plans for India at the sideline of the Forbes Global CEO Conference in Singapore.

source https://economictimes.indiatimes.com/industry/banking/finance/gateway-partners-sees-over-1-bn-investment-potential-in-india-over-5-10-years/articleshow/94451854.cms

IndusInd Bank to be a large bank in 5 years with a Rs 5 lakh crore balance sheet

Private lender IndusInd Bank’s balance sheet will cross `5 lakh crore in the next five years, its managing director Sumant Kathpalia told Saloni Shukla and MC Govardhana Rangan in an interview.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/indusind-bank-to-be-a-large-bank-in-5-years-with-a-5-lakh-crore-balance-sheet/articleshow/94440515.cms

BANKING

Private lender IndusInd Bank’s balance sheet will cross `5 lakh crore in the next five years, its managing director Sumant Kathpalia told Saloni Shukla and MC Govardhana Rangan in an interview.

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Medi Assist to acquire Medvantage Insurance TPA

The companies last week signed a definitive agreement towards this merger and are now awaiting approval from sector regulator Insurance Regulatory and Development Authority (IRDA) for the same, three people familiar with the matter said. The likely size of the deal is about ₹35 crore, industry insiders said. This could not be confirmed by either of the merging entities.

source https://economictimes.indiatimes.com/industry/banking/finance/insure/medi-assist-to-acquire-medvantage-insurance-tpa/articleshow/94440202.cms

BANKING

The companies last week signed a definitive agreement towards this merger and are now awaiting approval from sector regulator Insurance Regulatory and Development Authority (IRDA) for the same, three people familiar with the matter said. The likely size of the deal is about ₹35 crore, industry insiders said. This could not be confirmed by either of the merging entities.

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Piramal, Zurich Insurance mull joint bid for Reliance General Insurance

Zurich confirmed that it has made a separate offer to acquire a stake in Reliance General Insurance Company as part of the resolution process under Insolvency and Bankruptcy Code (IBC).

source https://economictimes.indiatimes.com/industry/banking/finance/insure/piramal-zurich-insurance-mull-joint-bid-for-reliance-general-insurance/articleshow/94438082.cms

BANKING

Zurich confirmed that it has made a separate offer to acquire a stake in Reliance General Insurance Company as part of the resolution process under Insolvency and Bankruptcy Code (IBC).

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BANKING

High defaults of about 8 per cent in the education loan portfolio have made banks cautious and go slow on the sanction of such credit. Non-performing assets (NPAs) in the education loan category including public sector banks' (PSBs) were 7.82 per cent at the end of June quarter of the current financial year.

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High NPAs in education loan segment turn banks cautious

High defaults of about 8 per cent in the education loan portfolio have made banks cautious and go slow on the sanction of such credit. Non-performing assets (NPAs) in the education loan category including public sector banks' (PSBs) were 7.82 per cent at the end of June quarter of the current financial year.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/high-npas-in-education-loan-segment-turn-banks-cautious/articleshow/94433496.cms

Loan recovery agents face RBI heat for unfair practices

Even as financial institutions are in the thick of action with regulations, the role of loan recovery agents is coming to light once again. This, after a Reserve Bank of India order banning Mahindra Finance from using third party recovery agents for recovery and repossession of assets after an unfortunate incident at Hazaribagh last week.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/loan-recovery-agents-face-rbi-heat-for-unfair-practices/articleshow/94424349.cms

BANKING

Even as financial institutions are in the thick of action with regulations, the role of loan recovery agents is coming to light once again. This, after a Reserve Bank of India order banning Mahindra Finance from using third party recovery agents for recovery and repossession of assets after an unfortunate incident at Hazaribagh last week.

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Assam to start Category II of Micro Finance Incentive and Relief Scheme by October

Earlier the state government had provided money to borrowers who had been making regular payments to the lenders. Micro finance loan waiver is one of the pre poll promises of the BJP led government.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/assam-to-start-category-ii-of-micro-finance-incentive-and-relief-scheme-by-october/articleshow/94422328.cms

BANKING

Earlier the state government had provided money to borrowers who had been making regular payments to the lenders. Micro finance loan waiver is one of the pre poll promises of the BJP led government.

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BANKING

Mashreq in India focuses on wholesale banking, cross-border trade, treasury and investment banking products through its branch in Mumbai. It also has a global competency center named Mashreq Global Network in Bangalore. In January this year, Mashreq Bank invested an additional capital of $100 million. Abdelaal said India remains a strategic market for the bank especially with the global centre in Bangalore.

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Mashreq Bank will continue to make investments to expand its business in India: CEO Ahmed Abdelaal

Mashreq in India focuses on wholesale banking, cross-border trade, treasury and investment banking products through its branch in Mumbai. It also has a global competency center named Mashreq Global Network in Bangalore. In January this year, Mashreq Bank invested an additional capital of $100 million. Abdelaal said India remains a strategic market for the bank especially with the global centre in Bangalore.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/mashreq-bank-will-continue-to-make-investments-to-expand-its-business-in-india-ceo-ahmed-abdelaal/articleshow/94412444.cms

Bank credit growth at 16.2 %, more than double last year's pace

ank credit rose 16.2 percent to Rs 125.5 lakh crore as of September 9'22 over last year's levels. This is reckoned to be the highest growth in more than eight years and more than double the pace of 6. per cent growth in September'21. Analysts attribute this to a surge in corporate demand besides a steady growth in retail and MSME loans.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/bank-credit-growth-at-16-2-more-than-double-last-years-pace/articleshow/94406548.cms

BANKING

ank credit rose 16.2 percent to Rs 125.5 lakh crore as of September 9'22 over last year's levels. This is reckoned to be the highest growth in more than eight years and more than double the pace of 6. per cent growth in September'21. Analysts attribute this to a surge in corporate demand besides a steady growth in retail and MSME loans.

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BANKING

India presents “very clear” opportunities, said Manolo Falco, the global co-head of Banking, Capital markets and Advisory, in an interview in Mumbai. The New York-based lender expects initial public offerings in India to pick up next year as well as inbound deals in renewable energy and infrastructure, he said.

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BANKING

According to the data provided by the Insurance Regulatory and Development Authority of India (Irdai), a total of 24 general insurers witnessed a 9.3 per cent growth in their collective gross direct premium income in August at Rs 17,101.75 crore as against Rs 15,648.63 crore in the year-ago period.

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BANKING

The state-owned bank is carrying a gross NPA burden of ₹29,000 crore, which is 14.9% of its outstanding loan portfolio. The Reserve Bank of India (RBI) lifted business restrictions on the bank under the prompt corrective action (PCA) framework Tuesday, prompting the stock to surge nearly 10% the next day.

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BANKING

The directive comes days after loan recovery agents of Mahindra Finance allegedly crushed a 27-year-old pregnant woman in Hazaribagh district in Jharkhand to death under a tractor. The agent was was forcibly taking the vehicle away for non-payment of dues, a senior police official had told PTI.

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Axis Bank starts digital lending through Account Aggregator Framework

Axis Bank is already live on multiple Account Aggregators like Anumati-AA, OneMoney-AA, FinViu–AA, covering retail and SME customers. The Bank’s loan disbursals have increased more than 30% month-on-month since Go–Live on the Account Aggregator framework, it said.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/axis-bank-starts-digital-lending-through-account-aggregator-framework/articleshow/94377758.cms

BANKING

Axis Bank is already live on multiple Account Aggregators like Anumati-AA, OneMoney-AA, FinViu–AA, covering retail and SME customers. The Bank’s loan disbursals have increased more than 30% month-on-month since Go–Live on the Account Aggregator framework, it said.

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