In aggregate terms, bank loans advanced 16.3% in June. Retail loans climbed more than a fifth on year, supported mainly by home and vehicle loans, the latest central bank data showed. Bank loans to non-bank lenders climbed, and so did the disbursements to large companies.
Retail loans rose 20.9 per cent (y-o-y) in June 2023 compared to 18.1 per cent a year ago, mainly supported by ‘housing’ and ‘vehicle’ loans. " The rapid pace of personal (retail) loan growth (both housing and non-housing) has been supporting overall credit expansion" said a report on the state of the economy published in RBI's latest monthly bulletin.
Private lender Kotak Mahindra Bank refuted claims made in a news report which claimed the Reserve Bank of India wanted the bank to select someone outside its ranks to succeed billionaire founder Uday Kotak as the next Chief Executive Officer. The bank however has termed claims made in these reports "completely incorrect and baseless".
India’s banking regulator, the Reserve Bank of India (RBI), is urging Kotak Mahindra Bank to choose an external candidate as its new CEO following the departure of founder Uday Kotak. Additionally, the RBI is examining stakes held by the bank in Kotak Mahindra Life Insurance and Kotak Mahindra General Insurance to evaluate the banks’ stakes in insurance companies.
India's corporate capex spending is rising due to rising cash flows and improving balance sheets, with three out of four companies from a sample of 373 of the S&P BSE 500 index reporting year-on-year improvement in gross fixed assets for FY23. Mainly oil and gas, metals and power firms form a major part of incremental GFA.
The RBI has highlighted that important forces boosting socio-economic growth are the financial activity of the banking industry. Rural development also means transformation of the rural population. It is a strategic move, in line with the government’s aim to double farmers' income.
Overall bank borrowings stood at a whopping Rs 8.2 lakh crore as on July 14, a day after the record date for the merger, the latest data published by the Reserve Bank of India (RBI) showed. This is Rs 2.7 lakh crore higher than the previous record high posted on October 21, 2022.
The shareholders of the company at its Extraordinary General Meeting (EGM) held on July 29, 2023, have approved infusion of capital of about Rs 200 crore in the company, by way of the issue of equity shares on a private placement basis, it said.
Two of these banks are from Russia, he said. "We will soon approach the Reserve Bank of India for approval," he said. Uco has already opened rupee vostro accounts for four Russian banks while it received regulatory approval for opening accounts for eight more overseas banks including six from Russia.
Despite a challenging fiscal year marked by rising interest rates, high inflation, and market volatility, CPP Investments has reported a return of 1.3%. The largest pension fund manager in Canada grew its Indian market portfolio by 11% in FY23 to C$22bn. CPP Investments CEO John Graham said the portfolio was encouraged by the breadth of its investments in India, which span health care, technology, infrastructure, credit, and real estate.
Though public and private sector banks offer this product, non-banking finance companies (NBFCs) have been more aggressive. The selling pitch for loans against mutual funds is that you do not have to liquidate your performing schemes for want of short-term funds.
Ambani's big weapon besides his huge cash pile is the extensive data trails that his mega retail and telecom businesses generate. According to Ambani, the aim is to lend to consumers and merchants based on proprietary data analytics, and then use it to branch out to insurance, payments, digital broking and asset management.
The collaboration with JM Financial Services will unlock new opportunities for Future Generali India Life Insurance to diversify its product portfolio and leverage its distribution and financial advisory capabilities. The partnership will capitalize on the strengths of both organizations, with an amalgamation of innovative products offered by Future Generali India Life Insurance and the comprehensive distribution capabilities of JM Financial Services, creating synergies that will empower individuals, families, and businesses to secure their financial future.
Liberty General Insurance on Thursday was appointed as the lead insurer for Delhi by the Insurance Regulatory and Development Authority of India (IRDAI). The appointment comes as a part of IRDAI’s State Insurance Plan, which aims to enhance financial awareness and drive insurance inclusion in collaboration with other insurers.
Private banks in India are facing a high rate of attrition, particularly amongst younger entry-level employees due to high demand for loans. Last year, HDFC Bank's turnover rate rose to 34%, Axis Bank was at 35% and Kotak Mahindra Bank recorded a surge in at approximately 50% whilst Yes Bank's attrition hit 43%. The attrition rate is caused by increasing pressure on frontline staff to fulfil the demand for loans.
Punjab National Bank (PNB) has reported a 307% increase in its standalone net profit for the quarter ended June 30 at ₹1,255 crore against ₹308 crore in the year-ago period, mostly on account of a decline in bad loans and record increase in net interest income, or NII.
Northern Arc Capital's Nu Score, a machine-learning based analytical tool, will be used for underwriting and risk assessment by Pahal Financial Services, a Gujarat-based NBFC. Pahal aims disbursement of Rs 2,000 crore to 6.5 lakh borrowers in this fiscal.
Bank of Baroda, DBS Bank and Karur Vysya Bank are likely to sell their cumulative stake of just over 30% in Canbank Computer Services to Canara Bank, its majority owner. This will make Canbank Computer, a software-enabled services and ATM management company, a fully owned subsidiary of Canara Bank.
The Reserve Bank of India has allowed 20 banks operating in India to open 92 Special Rupee Vostro Accounts of partner banks from 22 countries in a bid to promote bilateral trade in local currencies. An MoU has also been signed between the RBI and the Central Bank of UAE to allow exporters and importers to invoice and pay in their respective domestic currencies.
Razorpay on Wednesday announced the launch of its MoneySaver Export Account to offer up to 50 per cent savings on international bank transfers for Indian exporters. The initiative allows exporters to receive international bank transfers from 160 countries.
Visa has signed a co-branded card agreement with Gautam Adani's conglomerate allowing them to access 400m customers through Adani's airports and online travel services in India. Adani runs seven airports at present and is planning to bid on more across India. Visa CEO, Ryan McInerney said the cards will bring the benefits of retail, airports and online travel services to its users.
Indian scheduled commercial banks have recovered around Rs 10 lakh crore from non-performing assets (NPAs) in the last nine financial years, according to the country's finance ministry. Minister of State for Finance Bhagwat Karad added that the Insolvency and Bankruptcy Code, 2016 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 have helped change the credit culture.
HDFC Life and ICICI Prudential Life Insurance previously told exchanges that they received GST demand notices of ₹942.18 crore and ₹492.06 crore, respectively. They plan to take legal action. HDFC Life has deposited ₹50 crore, and ICICI Prudential Life Insurance deposited ₹190 crore during the inquiry without accepting liability.
More than seven lakh depositors of Sahara cooperative societies have registered on the Central Registrar of Cooperative Societies (CRCS)-Sahara Refund Portal to claim their money, totaling ₹158 crore as of Monday. Out of that total, only 18,442 depositors have verified all details, including receipt of making payment to one of the four Sahara cooperative societies. The government believes there are enough funds to make payments of up to ₹10,000 to investors within 45 days of verifying their details.
The insurance buyout will allow Kolkata-based Bandhan, which began as a microfinance company, to expand its remit beyond banking and asset management. The stake purchase is subject to regulatory approvals. The value of the buyout, and the quantum of proceeds to each of the exiting stakeholders, weren't immediately known.
The government has asked banks to keep vigil and inform their customers of fraud in Mudra loans. The directive follows multiple instances of frauds related to Mudra loans which have come to light. There have been reports of several unsuspecting small loan seekers getting duped by fraudsters impersonating as facilitators of Mudra loans.
Private sector Tamilnad Mercantile Bank Ltd has set a target of 12-15 per cent growth on its deposits and advances during the current financial year, its MD and CEO said on Monday. The Tuticorin-headquartered bank, which has been operating for over 100 years, has recorded a 11.53 per cent on its net profit for the April-June 2023 quarter at Rs 261.23 crore as compared to Rs 234.21 crore registered in the same period of last year.
Acknowledging that she has received complaints of merciless loan collections by some banks, Union Finance Minister Nirmala Sitharaman informed Parliament on Monday that instructions were given to banks, asking them to deal with sensitivity.
During Question Hour as Minister of State for Finance Bhagwat Karad was replying to a question by a Shiv Sena member on harsh tactics undertaken by banks while dealing with poor loan defaulters, Sitharaman intervened, saying that it is a sensitive matter, which has been brought to the notice of the government quite often.
PhonePe has launched an ‘Income Tax Payment’ feature in India which enables taxpayers to pay self-assessment and advance tax using UPI or credit card payments, directly on the app. The payments company has joined forces with PayMate, a B2B payments provider, to create a secure and efficient method of tax payment.
Domestic Indian banks, which have fast tracked their efforts to enhance their digital capabilities, are luring top-notch tech talent from leading new age companies and global firms, said senior company officials and search experts.
HDFC Bank expects 17-18 per cent loan growth during the current financial year as there is enough credit demand. Effective July 1, the parent mortgage firm HDFC Ltd merged with its subsidiary HDFC Bank making it the second biggest lender after State Bank of India.
Addressing the company's 23rd annual general meeting, Parekh, who till June 30 was the chairman of HDFC which got merged with HDFC Bank, said several changes that the regulator Irdai is proposing would enhance insurance penetration, facilitate sustainable growth and ease the operating environment.
The bank's overall gross bad loan ratio is came down by 288 bps to 7.34 per cent (Rs 60,104 crore) now and net NPAs by 173 bps to 1.58 per cent (Rs 12,138 crore), and hopes to bring it further down to under-6 per cent by March, she said, adding as a result, provisions for bad loans came down to Rs 1,984 crore from Rs 3,653 crore. Manimekhalai also said the bank will be raising Rs 10,000 crore in equity capital not to buffer up its core capital base but to meet the Sebi mandate of having a 25 per cent public float.
A similar relief was granted by the corporate affairs ministry in 2017 for a five-year period. The latest move comes at a time when the government has stepped up focus on modernising the RRBs in a bid to spur credit growth in remote areas and boost economic activities.
S&P Global Ratings predicts that India's banking sector will see a decrease in weak loans to 3-3.5% of gross advances by March 2025. This decline is based on structural progress and good economic prospects supporting the financial institutions' resilience. The report estimates India's GDP will increase 6-7.1% annually in fiscal years 2024-2026, making it the fastest-growing economy in Asia-Pacific and globally.
JFSL, the demerged financial services unit of Reliance Industries, was valued at about USD 21 billion, ahead of Adani group firms, Coal India and Indian Oil. Jio Financial Services Ltd (JFSL) stock was priced at Rs 261.85 based on the difference between Reliance's stock price at Wednesday's close of Rs 2,841.85 and Rs 2,580, its price at the end of an hour-long special pre-market session.
Private equity and venture capital (PE/VC) funds' investments into Indian entities declined by nearly a fourth to USD 27.5 billion in January-June 2023 against the year-ago period, a report said on Thursday. However, in value terms, investments were up 33 per cent against July-December 2022, the report by industry lobby Indian Venture and Alternate Capital Association (IVCA) and consultancy firm EY said.
ICRA has reconsidered its assessment for non-bank finance companies (NBFCs), forecasting growth in the unsecured retail loans market. The agency anticipates growth of between 18% to 20%, up from its previous estimation of between 12% to 14%, with the rise driven by increased demand for loans such as personal and consumption credits, microfinance loans and small enterprise loans.
Fino Payments Bank is planning to upgrade to a small finance bank after completing five years of operations, according to Managing Director Rishi Gupta. The Navi Mumbai-based firm, which started operations in July 2017, is the only payments bank in the sector being traded on exchanges.
A successful fintech loans platform draws upon what the Bank for International Settlements calls a self-reinforcing “DNA loop,” shorthand for data, network and activity. The digital trail people leave behind on e-commerce or social media sites can be used to bind them into a strong network, which can be harnessed to encourage borrowing activity, leading to yet more data on consumer behavior.
The Reserve Bank of India (RBI) has cancelled the licence of Uttar Pradesh-based United India Co-operative Bank Limited, citing lack of adequate capital and earning prospects. The bank will cease to carry on business and every depositor will be entitled to receive deposit insurance claim amount of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation.
The capital infusion in Reliance General comes at a time when the Committee of Creditors (CoC) has approved the Resolution Plan of IndusInd International Holdings Ltd (IIHL), a Hinduja Group entity, with 99.6 per cent votes.
