BANKING

Bombay High Court denied Wadia Group's urgent relief against Bank of Baroda, related to a corporate guarantee for Go First Airlines. Nowrosjee Wadia & Sons Ltd sought an injunction due to a financial tie-up condition.

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BANKING

The UK's development finance institution said that it has a strong pipeline on both debt and equity investment in these two sectors and that it is looking for innovative ideas for funding.

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BANKING

The bank has increased the mark-up by 10 bps from the existing level of 2.75 per cent to 2.85 per cent, and with the present repo rate of 6.5 per cent, the repo-based lending rate (RBLR) will be 9.35 per cent, it said.

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BANKING

To avoid delays, inconvenience, and a brush with the law, field officials and BCs are being told to put on their best behaviour, besides being “strongly discouraged” to carry cash beyond Rs 50,000 during the weeks of the election.

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BANKING

NARCL completed transactions of ₹24,000 crore in bank debt during FY24. It transferred road assets, including Metenere and Simplex Infrastructures. With these acquisitions, the total debt held by NARCL will almost double to Rs 48,652 crore, up from the Rs 25,000 crore acquired by the bad bank so far. However, it is still not close to the Rs 82,845-crore target set in 2022.

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BANKING

The gross non-performing assets (GNPA) of the Indian banking system are set to improve further to up to 2.1 per cent by the end of FY25, a report said on Friday. GNPAs are likely to come at 2.5-2.7 per cent in FY24 and will improve further to 2.1-2.4 per cent by the end of FY25, domestic rating agency Care Ratings said in the report.

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BANKING

Agricultural loans grew by 20.1%. Fresh loan rates at 9.36%. External Benchmark-based Lending Rate loans rose to 56.2%. Commercial real estate loans surged by 37.9%.

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BANKING

ICICI Bank, Axis Bank, and India Infrastructure Finance Ltd (IIFL) have collectively subscribed to ₹800 crore bonds issued by GMR group-promoted Delhi International Airport. The bonds, raised for 10 years at an annualised coupon of 9.84% with a reset clause at the end of five years, will finance the capital expenditure for phase 3A expansion at Indira Gandhi International Airport. Last week, ICICI Bank and Axis Bank invested ₹300 crore each, while IIFL invested ₹200 crore in the bonds, which are linked to the repo rate with a spread cap and floor.

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BANKING

The loan is raised for three years and three months tenure and benchmarked to a three-month term SOFR (Secured Overnight Financing Rate) with a margin of 2.85%. The cost comes to 9.58% a year, lower than lender's incremental cost of 10.41% for the past none months, Muthoot Microfin chief executive Sadaf Sayeed told ET.

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BANKING

Kotak Mahindra Bank announced the acquisition of NBFC Sonata Finance Pvt Ltd for Rs 537 crore. Sonata operates across 10 states through 549 branches, holding an Asset Under Management (AUM) of around Rs 2,620 crore as of December 31, 2023. The acquisition makes Sonata a wholly-owned subsidiary of Kotak Bank.

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BANKING

Dated March 20, the letter by the Insurance Regulatory and Development Authority of India (IRDAI) was in response to a request by administrator Nageswara Rao Y to approve the transfer of RCap's shares in three insurance companies to Aasia Enterprises LLP, another Hinduja group company. In February, the National Company Law Tribunal (NCLT) had approved a ₹9,661-crore resolution plan by IIHL, Aasia Enterprises LLP and IIHL BFSI (India) Ltd for the previously Anil Ambani-owned RCap.

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BANKING

Indian lenders and Russia's Gazprombank are in early-stage discussions to establish correspondent banking services for cross-border payments and trade support. Gazprombank aims to expand its operations in India and has engaged with Indian bankers to explore strengthening banking ties. The talks come amid challenges in international trade due to US-led sanctions on Russia. Gazprombank shared details on sanctions and compliance protocols, while Indian banks discussed exploring bilateral payments through the special rupee vostro account (SRVA) mechanism, permitted by the RBI to promote bilateral trade in local currencies.

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BANKING

DHFL had availed various term loan facilities of more than Rs 4,000 crore and working capital facilities of Rs 450 crores. Wadhawan had provided unconditional and irrevocable guarantees toward the credit facilities granted by the public sector lender to DHFL. On November 20, 2019, the central bank superseded the board of DHFL and appointed R Subramaniakumar as the company administrator.

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BANKING

The Reserve Bank of India (RBI) is increasing regulatory scrutiny of lenders to improve governance and curb exuberant lending. The RBI has tightened its norms on unsecured loans and warned lenders against exuberance due to rising risks to the financial system. The increased focus on compliance and tight liquidity in the banking system may slow down credit growth to 14% in 2024-25 from 16% this financial year.

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BANKING

Fitch Ratings predicts a 10-20 basis point narrowing of Indian banks' net interest margins (NIMs) over the next two years due to increased competition for deposits, leading to higher funding costs. Fitch expects banks' earnings to remain resilient, driven by net interest income, although the compression in NIMs could restrict their medium-term earnings potential.

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BANKING

High-street banks in Mumbai are entangled in a silent tussle with CBI over 'old' fraud cases. The dispute involves the retrospective application of the SC ruling and the potential impact on borrowers and the banking industry.

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BANKING

"We are launching multiple products in respect of assets and we want the branches to build the assets. All these products will be used for acquiring the customer. Our probability of acquiring him is limited if we don't have products lined up. If somebody wants an education loan and we don't have it, he will go to another bank and probably take deposits too. So retaining liability without a corresponding product is going to be a challenge," says RBL Bank CEO R Subramaniakumar.

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BANKING

The Insurance Regulatory and Development Authority of India (IRDAI) has decided to maintain existing surrender values for life insurance policies following concerns raised by insurers. The regulator has also allowed the sale of Index Linked Insurance Products tied to publicly available indexes. Initially proposed higher surrender values in draft regulations were reconsidered due to industry feedback, with IRDAI opting to retain the regulations.

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BANKING

Under the belief that reissuing the specific notification may not go against the model code of conduct, many banks are preparing to integrate their systems with RBI’s for capturing the card spend information of individual customers during personal foreign tours.

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BANKING

Six ARCs, led by Aditya Birla and Kotak Mahindra-backed, control majority debt in KSK Mahanadi Power due to lenders' exits amid debt resolution delays. Prudent ARC recently acquired debt through a Swiss auction, ensuring an 80% recovery for the lender."}

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BANKING

PSBs are projected to pay a dividend exceeding Rs 15,000 crore for FY24 due to increased profitability. The RBI is proposing new rules for dividend declarations based on NNPA ratios and total capital adequacy.

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BANKING

The Reserve Bank of India has initiated special audits for IIFL Finance Ltd and JM Financial Products Ltd to further investigate regulatory breaches. The audits will be conducted by auditors appointed through a tender process, with firms empanelled by Sebi for forensic audit eligible to participate. The audits come after the RBI imposed restrictions on both companies earlier this month for non-compliance with regulatory guidelines. IIFL Finance was barred from sanctioning or disbursing gold loans, while JM Financial Products was restricted from providing financing against shares and debentures.

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BANKING

Reserve Bank of India (RBI) data showed that credit card transactions increased to Rs 1.7 lakh crore in January from Rs 1.3 lakh crore a year ago. In volume terms, the increase was 26%, to 330 million from 260 million, during this period.

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BANKING

The Reserve Bank of India announced special measures for the current financial year's closing, facilitating taxpayer convenience. RBI offices and designated agency bank branches will operate normally on March 30 and 31, with extended electronic transaction timings. Special clearing operations for government cheques and an extended reporting window were also outlined.

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BANKING

RBI deputy governor Swaminathan J discussed the rise of 'agile' fintech platforms at the Global Money Week 2024 in Paris, emphasizing the need for robust regulatory frameworks, cybersecurity measures, and consumer awareness to mitigate fraud risks.

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BANKING

"The JV has applied for a preliminary licence to the regulator and it will start with more than ₹300 crore of initial investment," said a source aware of the plans. Another insurance veteran, V Jagannathan, the founder of Star Health and Allied Insurance Company, has also sought to set up a standalone health insurance company, as reported earlier.

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BANKING

Japanese banks may derive comfort from Reliance Capital's association with Nippon Life, a joint venture partner of the former, according to the sources. The two together run a life insurance joint venture in India.

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BANKING

The income tax demand was against a deduction claimed by the company. "The company is of the opinion that the said demand notice is based on incorrect facts and assumptions, and hence the management is confident of taking up this with the IT department explaining the full facts of the case," the company said in a regulatory filing to stock exchanges.

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BANKING

HDFC Bank announced the completion of selling its stake in HDFC Credila, its education finance arm, for Rs 9,552.73 crore to private equity firms BPEA EQT and ChrysCapital. The sale, part of regulatory requirements preceding the merger of mortgage lender Housing Development Finance Corp with HDFC Bank, was finalized after its announcement in June the previous year.

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BANKING

In November 2023, the regulator increased the risk weights for loans to NBFCs by 25 basis points, making bank borrowing more expensive for them. A basis point is 0.01 percentage point.

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BANKING

National Asset Reconstruction Company (NARCL) emerged as the winning bidder in an uncontested Swiss challenge auction for a majority debt of Wind World (India). NARCL offered Rs 670 crore to acquire Rs 3763 crore debt from lenders, providing an 18% recovery. The resolution process faced delays due to Covid-19 and internal disputes within the company.

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BANKING

DBS Bank is considering several startups including in healthcare, technology, and firms using Artificial intelligence (AI) in financial services such as insurance; transportation, logistics and retail, waste management companies and supply chain logistics spaces, Verma said.

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BANKING

Arvind Kapil is currently the group head mortgage banking business at the bank which includes home loans, loans against property (LAP) and the sales business of the erstwhile Housing Development Finance Corp (HDFC) which was merged with the bank last year.

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BANKING

In its petition, IL&FS said it is aggrieved by the "blatant violation and disregard" of previous NCLAT orders by the banks. IL&FS also charged banks of taking procedural action under the garb of the RBI guidelines, and "harassing the Directors of the IL&FS companies".

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BANKING

Asset Under Management nearly tripled to Rs 60.04 lakh crore as compared to Rs 21.07 lakh crore in 2013-14, while the total insurance premium more than doubled to Rs 10.4 lakh crore from Rs 3.94 lakh crore at the end of March 2014.

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BANKING

The business plans will cover strategies to increase low-cost deposits, raise capital, resolve bad loans, improve cybersecurity and undertake financial inclusion outreach, said a senior government official.

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BANKING

Financial Services Secretary Vivek Joshi emphasized the need for public sector banks to prevent mis-selling of insurance products and safeguard the interests of account holders. The Department of Financial Services has instructed banks to prioritize customer interests amidst complaints of fraudulent practices, especially in selling insurance policies to elderly customers

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BANKING

Muthoot Microfin, a Kerala-based NBFC-MFI, is expanding its operations in Telangana and planning to enter Andhra Pradesh by June. The company will open four branches in Telangana this month, located in Bhuvanagiri, Jangaon, Hanmakonda, and Parakala. Muthoot Microfin focuses on providing financial assistance to women in small businesses through income-generating microloans. Currently, it serves 3.28 million active customers through 1,424 branches across 18 states. CEO Sadaf Sayeed highlighted the company's growth strategy and market analysis approach for expanding into new geographies.

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BANKING

India's finance professionals are set for significant salary hikes in 2024, outstripping Hong Kong and Singapore. Major firms like HSBC Holdings Plc are expanding operations in India, reflecting the nation's economic growth and wealth management potential.

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BANKING

The Reserve Bank of India (RBI) has been increasingly imposing penalties on banks and non-banking finance companies for violating its rules. The move from a consultative approach to monetary policy and forming regulations has led to a paradigm shift in its approach to addressing regulatory breaches. The RBI has ordered Paytm Payments Bank to shut down its business for not complying with rules regarding know your customer (KYC) and prevention of money laundering, eroding its market value by nearly half in a matter of days.

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BANKING

The license will allow customers to continue using the Paytm app for payments through the unified payment interface, after Paytm Payments Bank ceases operations by March 15, as ordered by the Reserve Bank of India. Paytm's troubles began following regulatory action due to non-compliance with certain norms set by the country's central bank.

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BANKING

Five public sector lenders, including Bank of Maharashtra, IOB, and UCO Bank, plan to decrease government ownership to under 75% to meet Sebi's minimum public shareholding (MPS) requirements. While four out of 12 public sector banks already comply, the remaining five are formulating plans to fulfill the MPS condition by August 2024. Financial Services Secretary Vivek Joshi highlighted that banks have options like follow-on public offerings or Qualified Institutional Placements to reduce government stakes.

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BANKING

Paytm Payments Bank, mandated by the Reserve Bank of India, will cease operations such as accepting deposits and processing credit transactions from March 15 onward.

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BANKING

The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday allowed an application filed by the administrator of Reliance Capital and directed Hinduja Group-owned IndusInd International Holdings Ltd (IIHL) to implement the resolution plan for the financial services holding company by May 27.

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BANKING

The market share of RuPay cards is expected to improve soon as banks implement the recent Reserve Bank of India (RBI) directive, offering customers the option to choose card networks among Visa, Mastercard, or RuPay. The move, effective October 2024, aims to promote a domestic card, protect consumers, and accelerate RuPay's acceptance, potentially impacting card issuers' earnings due to lower fees and limited international acceptance.

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BANKING

SEBI seeks explanation from rating agencies, Icra Ratings and Care Ratings, for their inaction following RBI's curbs on IIFL Finance and JM Finance Product. The Reserve Bank of India (RBI) banned IIFL Finance from giving new gold loans on March 4 due to lapses in the lending process, and on March 5, it banned JM Financial Product from undertaking any form of business in shares and bond funding. Curbs on the two high-margin revenue streams are expected to impact the profitability of both companies.

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BANKING

CCI has cleared the merger of fintech firm Slice with North-East Small Finance Bank and approved the acquisition of stake and majority shareholding in Asian Institute of Nephrology and Urology by TPG Growth V SF Markets Pte Ltd and Lathe Investment Pvt Ltd respectively.

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BANKING

Health Minister Mansukh Mandaviya announced a credit assistance scheme by SIDBI to strengthen and expand Jan Aushadi Kendra network. Loan without collateral has credit guarantee from Credit Guarantee Fund Trust For Micro And Small Enterprises. PMBJKs sell 1,965 generic drugs and 293 surgical items, leading to significant savings.

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BANKING

Non-banking finance company Muthoot FinCorp has partnered with Veefin Solutions Ltd to launch supply chain finance operations in India. Muthoot FinCorp will utilize Veefin's technology to manage various aspects of supply chain finance, including onboarding suppliers and vendors, underwriting loans, and managing transactions. This partnership aims to enhance customer experience through a seamless process powered by contemporary technology. Muthoot FinCorp's CEO, Shaji Vargese, highlighted the importance of supply chain finance in optimizing working capital for buyers and suppliers, especially for MSMEs.

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BANKING

Anuj Bansal will be responsible for overall financial strategy, including corporate financial planning, budgeting, supply chain and treasury management. He will be a part of the bank’s executive committee and will work closely with Anubrata Biswas, managing director and CEO of Airtel Payments Bank.

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BANKING

State-run infrastructure financing firm IIFCL has proposed that the space sector should be classified as part of the infrastructure sector. IIFCL has disbursed around ₹18,000 crore in loans in FY24 and is providing transaction advisory services to India's premier space agency, ISRO. The government has reviewed the extant foreign direct investment (FDI) policy in the space sector and allowed up to 74% FDI under the automatic route in satellite manufacturing and operation, satellite data products, and ground and user segments.

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BANKING

The dominance of PhonePe and Google Pay in the UPI market has sparked discussions about introducing fees on merchant transactions. Fintech companies argue that a merchant discount rate (MDR) is needed for long-term sustainability. Introducing fees could incentivize smaller players to compete and attract bigger platforms, benefiting the overall UPI ecosystem.

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BANKING

Credit cards with cashback rewards are popular among consumers. HSBC Cashback Credit Card offers 10% cashback on dining and grocery purchases, with airport lounge visits. Axis Ace Credit Card offers cashback on utility bill payments, popular platforms, and waived joining fees. HDFC Bank MoneyBack Credit Card provides reward points, gift vouchers, investment opportunities, and cash points.

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BANKING

In the case of JAL, State Bank of India has the largest debt hold at 26%, followed by ICICI Bank at 19% and IDBI Bank at 11%. The company has total principal outstanding debt of ₹17,700 crore as of March 2023. This includes ₹650 crore that Ares SSG Capital-backed Asset Care & Reconstruction Enterprises (ACRE) acquired from Yes Bank and Karnataka Bank. The people said NARCL's ₹10,000 crore offer excludes the debt held by ARCE.

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BANKING

AU Small Finance Bank, recently granted RBI approval for the merger with Fincare Small Finance Bank, aims to evolve into a universal bank within the next 3-5 years. MD and CEO Sanjay Agarwal emphasized the focus on stabilizing the merger this year, showcasing the team's ability to manage complex integration challenges.

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BANKING

​​This decision will lead to an additional yearly expenditure of approximately Rs 8,284 crore for these banks, benefiting around 8 lakh bank employees. The wage hike is set to take effect from November 2022.

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BANKING

The concern comes amid a 17% rise in gold loans on a year-on-year basis and a 16.6% rally in the yellow metal's prices. Loans against gold jewellery stood at ₹1,01,934 crore as of January 26 and gold prices have touched a high of ₹65,140 per 10 grams on March 5. The finance ministry stated that it had noticed instances of non-compliance regarding the gold loan portfolio and had hence issued the directive.

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BANKING

It's unclear why the information was sought, but the Income Tax (I-T) department has directed these offshore funds to disclose the identities of the lenders, the latter's source of money, and the nature of agreement between the two parties. The move to fish out such information could well be to trace any possible and indirect links between overseas portfolio managers with Indian companies and promoters, feel some of the tax and finance professionals.

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BANKING

The National Asset Reconstruction Company of India (NARCL) has been the winning bidder for six distressed accounts with outstanding debt of over ₹17,000 crore that banks have put on the block in the last three months. The six accounts are Metenere, Pink City Expressway, West Haryana Highways Projects, Entertainment City, SEW LSY Highways, and Simplex Infrastructures. NARCL has offered ₹2,331 crore for the loans totalling ₹17,139 crore.

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BANKING

The government has asked banks to compile a list of stalled projects under the SWAMIH fund to speed up their completion. Procedural delays and feasibility reports are identified as primary issues. The SWAMIH-I fund has returned 25% of drawn capital and completed over 26,000 apartments.

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BANKING

Vineet Tripathi has over two decades of experience with banks, insurance companies and NBFCs. In his previous stint, he served as the chief business officer at Poonawalla, and has held leadership positions at Bandhan Bank, Tata Capital, Kotak Mahindra Bank, GE Money and Birla Sun Life Insurance.

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BANKING

The Central Bureau of Investigation (CBI) conducted raids across 62 locations in Rajasthan and Maharashtra in connection with suspicious Immediate Payment Service (IMPS) transactions worth Rs 820 crore reported at UCO Bank. The raids aimed to uncover details related to the IMPS scam, which involved wrongful posting of transactions and credited Rs 820 crore to UCO Bank accounts without debiting the originating banks.

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BANKING

AU Small Finance Bank, which has remained a western regional player, is set to expand into South as it is confident of replicating its model amid strong demand for credit, said managing director Sanjay Agarwal in an interview. Here's an edited excerpt:

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BANKING

RBI Governor Shaktikanta Das emphasizes support for Fintech while clarifying the action against Paytm Payments Bank (PPBL) as a response to non-compliance. He stresses the necessity of regulatory adherence using an analogy of owning a Ferrari but obeying traffic rules. Das confirms the March 15 deadline for PPBL wallet linkage and expects NPCI to decide on the Paytm payment app license soon.

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BANKING

JM Financial on Wednesday clarified that the company has not violated any RBI regulations and believes that there is no material deficiencies in its products' loan sanctioning process, reported Reuters.

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BANKING

In a report released on Monday, Nomura analysts pointed out that in February 2024, the monthly issuance of CDs for the banking system at ₹1.3 lakh crore was at a five-year high. "While CDs are a very small part of system deposits (2% of system deposits as of February 2024), the sharp rise in issuance is indicative of a continued resource crunch faced by banks.

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BANKING

The RBI statement directed JM Financial Products to “cease and desist, with immediate effect, from doing any form of financing against shares and debentures, including sanction and disbursal of loans against Initial Public Offering (IPO) of shares as well as against subscription to debentures.” JM Financial have strongly denied claims of lapses and violation made by the regulator.

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BANKING

Banks' bad loans have fallen to record lows as recoveries rise and many missed payments are regularized. Lenders anticipate stress and are building buffers. Bad loans fell 21% to Rs 4.85 lakh crore. The gross bad loans ratio is expected to improve to 2.8% this year.

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BANKING

Led by Diwakar Gupta, NARCL has emerged as the most active player in the bad loan market, acquiring over ₹30,000 crore of stressed loans in four months. It operates under the 15:85 structure, offering 15% cash and 85% security receipts.

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BANKING

Banks are enhancing their KYC standards by adding extra verification layers to identify accounts and account holders. The plan includes updating existing accounts, especially those with a single phone number linked to multiple or joint accounts, and seeking more verification from individuals with multiple accounts opened using different documents. A committee led by finance secretary TV Somanathan is working to standardise and ensure interoperable KYC norms across the financial sector. The move aims to address concerns about slackened KYC norms by fintech companies, which may increase risks for lenders.

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BANKING

Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Monday that the central bank plans to introduce interoperability for internet banking in 2024, enabling seamless transactions across various digital payment systems.

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BANKING

Aditya Birla Group plans to consolidate its non-banking finance companies (NBFCs) to create better synergies and ensure optimal utilisation of resources and greater economies of scale, following approval by the National Company Law Tribunal (NCLT).

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BANKING

According to a survey by LocalCircles, a majority of people will stop using UPI if a transaction fee is imposed. The survey also found that 1 in 2 UPI users conduct over 10 transactions every month. In August 2022, the Reserve Bank of India (RBI) published a discussion paper suggesting a tiered fee structure for UPI payments, varying according to different transaction amounts. Subsequent to the release of the RBI discussion paper, the finance ministry clarified that there were no plans to impose fees on UPI transactions.

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BANKING

Cooperation Minister Amit Shah launched the National Urban Cooperative Finance and Development Corporation (NUCFDC) to upgrade urban cooperative banks and set up one bank in each town. NUCFDC received RBI approval. It aims to ensure ATM facility, credit/debit cards, clearing system, SLR limit, and refinancing.

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BANKING

It has also taken action against Catalyst Trustee, on whom it imposed a one-year ban on the grounds that it overlooked compliance violations by the fund manager. The ban is only applicable to trustee services provided to funds by Catalyst and not to its mainstay debenture trustee business.

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