The transaction was executed in a block deal on Wednesday in which existing investor CDC Group, which has been invested in IIFL Finance since last 6 years sold part of its investments. CDC Group sold 14 million shares which were bought by The Capital Group and Sunil Singhania’s Abakkus Emerging Opportunities Fund, said sources.
Data released by the Reserve Bank of India (RBI) also showed that credit to the household sector rose by 10.9 per cent on a year-on-year basis (YoY).
Latest RBI data shows that HDFC Bank has lost about 160 basis points of market share in the business since end of November 2020 but still corners 24% of the market while ICICI, SBI Cards and Axis have gained 108 basis points, 37 basis points and 11 basis points to 17.2%, 19.2% and 11.6% respectively over the same period in terms of number of cards.
Indian banks face systemic risk as the country sorts through the aftermath of the COVID second wave. Lenders struggled with a high level of weak loans well before the pandemic struck and clearly, conditions have deteriorated, S&P said in a statement.
The bank's head of consumer finance, digital banking and information technology, Parag Rao, said that it has used the last six months to "introspect, re-engineer and innovate" about the cards business, where it has 15.5 million customers.
MFIN is an industry association comprising 58 NBFC-MFIs and 39 associates including banks, small finance banks (SFBs) and NBFCs.
A senior official from Axis Bank has said, an online sale fest launched by Axis Bank offering 15 per cent discounts is witnessing a 10-times surge in daily volumes. President and head of digital business and transformation (Axis Bank), Sameer Shetty said that the ordering is across income segments.
The move, initiated more than a year ago, could trigger a migration of many lucrative current accounts - which lower a bank's fund cost and cash management business - from MNC banks to public sector lenders and some of the large private sector Indian banks.
The matter involves what the petitioner perceives to be the "biggest scam in the capital market in this country," the bench said.
A penalty of Rs 62.50 lakh has been imposed on The Ahmedabad Mercantile Co-operative Bank, Ahmedabad; Rs 37.50 lakh on SVC Co-operative Bank, Mumbai; and Rs 25 lakh on Saraswat Cooperative Bank, Mumbai.
On Monday, the government expanded the emergency credit line guarantee scheme (ECLGS) by another Rs 1.5 lakh crore, which Crisil feels will help alleviate the potential stress on asset quality of banks arising from the second wave of the pandemic.
The proposed bad bank or NARCL will pay up to 15 per cent of the agreed value for the loans in cash and the remaining 85 per cent would be government-guaranteed security receipts. The government guarantee would be invoked if there is loss against the threshold value.
As per the revision in service charges for BSBD accounts, State Bank of India (SBI) will levy charges ranging from Rs 15 to Rs 75 for the "additional value added services" with effect from July 1, 2021.
Credit institutions are fast approaching a saturation level in new customers as over half of the borrowers are from the existing customer base of a bank, the report by Transunion CIBIL said.
The company claimed that the conventional methods like polyurethane ear tags (PU ear tags) can be easily tampered with and are prone to duplication and fraud, while the Injectable Radio Frequency Identification (RFID) tags are expensive and require specialized skills.
"NBFCs and MFIs play a very vital role in pushing inclusion of low-income clients. They need to be supported. Bankers are understandably risk-averse at this point, so we requested the government for some form of support. I am very happy that the government has agreed to it."
NCLAT termed the plea of Prudential International Insurance Holdings Ltd (PIIHL) as "premature" as it has approached the appellate tribunal without getting a decision on its petition filed before the Mumbai-bench of NCLT, which is scheduled to hear the matter on Wednesday (June 30).
Issuing guidelines for managing risk in outsourcing of financial services by cooperative banks, the central bank said the lenders can hire experts, including former employees, on a contractual basis subject to certain conditions.
Asset quality is still a major concern for many Indian banks even as non-performing assets (NPA), on average, could be contained, the global consultancy firm said.
The company, which offers software to help in tax filing and other services, has also unveiled a new brand identity 'Clear' to represent all of its offerings across taxes, invoices, wealth management, and credit for businesses.
The rise in the NPAs would be double that of the 40 to 50 basis points reported in the fiscal ended March 2021 as loans in risky segments like real estate, personal loans, micro finance, loans to SMEs and vehicle finance which constitute 30% of the loans from NBFCs will be impacted.
Bharti AXA Life Insurance registered a marginal rise of 4.3 per cent in its total premium income to Rs 2,281 crore in FY21. The insurer said it plans to expand its distribution footprint across the country by engaging with different distribution channels.
Kotak Investment Advisors, a part of Kotak Mahindra Bank, February 2019 launched KSSF as an AIF special situations fund with a USD 1-billion corpus. It received 50 per cent maiden money from the UAE sovereign wealth fund Abu Dhabi Investment Authority (USD 500 million), 25 per cent (USD 250 million) from the Singaporean sovereign wealth fund GIC, and the rest between Premji Invest and Kotak Group.
Khara, however, said that policy measures and the coordinated efforts of the Reserve Bank of India (RBI) and the Centre were directed towards enabling growth on a more durable basis during these difficult times.
The year started on an uncertain note, the pandemic led to a significant loss of human life and now presents a challenge to public health systems, the way of working and the social norms, Parekh said in his address to shareholders in the company's annual report for 2020-21.
The pan-India campaign to educate the general public about the essential rules and regulations will be launched in Hindi, Assamese, Bangla, Gujarati, Kannada, Malayalam, Marathi, Oriya, Punjabi, Sindhi, Tamil, Telugu and Urdu besides English.
The meeting of the high-level panel deliberated on the recommendation of the NITI Aayog on Thursday June 24, sources said, adding the panel would after tying up all loose ends will send the names of the shortlisted PSU banks to AM for consideration.
The banking sector has recorded its highest ever profits of Rs 1,02,252 crore in FY21, a year when the economy was battered by the pandemic. This is a significant turnaround compared to a net loss of nearly Rs 5,000 crore for the industry in FY19.
Two banks — HDFC Bank and SBI — contributed half of the industry’s profits. Of the total profits, HDFC Bank at Rs 31,116 crore accounted for 30%, an 18% increase over the previous year.
The voting result on the capital infusion led has been kept in abeyance till July 5 following a Securities Appellate Tribunal (SAT) order, allowing the voting to take place. The mortgage lender had appealed to SAT after market regulator Securities & Exchange Board stopped it from seeking shareholders' nod on the issue before doing an valuation through any independent agency.
It further said the MD/WTD should be a post graduate or have qualifications in finance discipline. He or she could be either chartered/cost accountant, MBA (finance) or have a diploma in banking or cooperative business management.
The disputes resolution tribunal (DRT) had sold these shares on June 23 after the Enforcement Directorate had transferred shares worth about Rs 6,624 crore of UBL to the SBI-led consortium on the directions of a special PMLA court that is hearing the case involving Mallya in Mumbai.
“It is hereby notified for the information of the public that the validity of the aforesaid directive… has been extended for a further period from July 1 to December 31,” the central bank said.
The bank will accelerate its digital offerings and shift more and more transactions online especially through its YONO application, Khara said in his first annual general meeting (AGM) since taking over as chairman of the country's largest bank in October 2020 for a three year term.
"Taking into account the time required for completion of various activities involved in the process, it is considered necessary to extend the aforesaid Directions," said the Cenntral Bank in a release.
India is strategically located on the world’s shipping routes and has a large coastline of approximately 7500 kms. India also has a dozen major and over 200 minor ports.
BharatPe has said that partnering Centrum Finance in a new bank, as part of the PMC Bank rescue, will enable it to provide a tech platform for all fintechs.
The Aarogyam loan can be availed either as term loan to support expansion/modernisation or as working capital facilities such as cash credit, bank guarantee/letter of credit, SBI said.
“Over 19.11 lakh Covid health claims have been reported as on 22nd June as far as medical insurance or hospitalisation is concerned. While in terms of death claims, which is handled by the life insurers, about 55,276 claims have been intimated and nearly 88 per cent i.e., 48,484 claims amounting to Rs 3,593 crore have already been settled,” said T.L. Alamelu, Member (Non-Life), IRDA while inaugurating 13th Global Insurance E-Summit & Awards organised by ASSOCHAM.
At 56.075 per cent credit-to-GDP ratio, total outstanding bank credit stood at USD 1.52 trillion in the country in 2020, according to the BIS data for the year, but this is still the second lowest among all its Asian peers. And when it comes to the emerging market peers, it is 135.5 per cent and at 88.7 per cent in advanced economies.
At the same time there is optimism that with a higher proportion of the population getting vaccinated, there will be a turnaround in the economic activity as has been witnessed in other countries.
Sahni will be taking over from Porush Singh, who is relocating to Singapore and assuming a new role within the company.
Earlier this month, the federal agency had booked Thapar, two private companies based at Delhi and Gurugram and their promoters and directors for causing an alleged loss of Rs. 466.51 crore (approx) to Yes Bank.
While large banks like State Bank of India, HDFC Bank, Axis Bank and ICICI Bank continue to be reluctant, some smaller banks such as IDFC Bank had started offering their services to some exchanges, several people in the know said. Now, more smaller players seem to be pulling back.
The penalty on Excellent Co-operative Bank was imposed for contravention of the directions issued by RBI on 'Maintenance of Deposit Accounts' and 'Know Your Customer (KYC)'. Janseva Sahakari Bank was fined for contravention of the direction issued by on KYC.
According to sources, although it is not part of the agenda, the board may discuss the PNB Housing Finance and Carlyle deal amid regulatory concerns.
The credit demand is primarily expected from the retail segment as seen in earlier months while corporate demand is likely to be muted.
Noting that central banks stand at the centre of a rapid transformation of the financial sector and the payment system, BIS said Central Bank Digital Currencies (CBDCs) represent a unique opportunity to design a technologically advanced representation of central bank money, one that offers the unique features of finality, liquidity and integrity.