The benchmark one-year tenor MCLR, which is used to price most consumer loans such as car, auto and personal, will be at 7.70 per cent against the existing 7.65 per cent, PNB said in a regulatory filing on Wednesday. The three-year MCLR stands at 8 per cent, up by 0.05 per cent.
Ever since the 140 bps hike in benchmark repo rates, weighted average lending rates on outstanding loans have risen 29 basis points, but weighted average rates on outstanding deposits has gone up by only 19 bps, according to the latest data released by the Reserve Bank of India
The banks also updated the ministry on their positions on the accounts being transferred to bad bank or National Asset Reconstruction Company of India Ltd, said the executive. adding that the government is keen that the entity kick-start its operations.
Addressing the 'Health Insurance Summit 2022' here, Insurance Regulatory and Development Authority of India (Irdai) chairman Debasish Panda said that high operating and distribution costs, and hospital expenses as indirect costs could be the reasons affecting the insurance pricing.
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RIL would be investing around $14-16 billion of capex each year across business segments for the next three years which would be nearly double that of the past two fiscal years. The street currently ascribes enterprise value (EV)/EBITDA of eight for the petrochemical business, which contributes one-third of the total fair value of the O2C business.
Axis is planning to take a 10% stake for around $9 million in the start-up's upcoming life insurance business, effectively valuing the business at $90 million, said the two sources, who declined to be named as the talks were private. The move comes after India's biggest private lender HDFC Bank said in a stock exchange disclosure last week that it planned to buy a 9.94% stake in Go Digit Life for up to 700 million rupees ($9 million).
The Cabinet Committee on Economic Affairs had given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May 2021.
Alvarez & Marsal and Grant Thornton are advising IL&FS on the bank-wise distribution of the proceeds from the recoveries. IL&FS had informed lenders last week that proceeds would be distributed in the third quarter as against the initial plan of this being done in the second quarter, said one of the persons cited above.
The deal was announced in March this year. Despite Citi losing market share on credit cards in India, Axis Bank says attrition of employees and customers in the business it was acquiring was within manageable limits.
A penalty of Rs 10 lakh has been imposed on Bharat Heavy Electricals Employees' Co-operative Bank, Kailasapuram, Tiruchirappalli, Tamil Nadu; Rs 5 lakh on The Ottapalam Co-operative Urban Bank Ltd, No.F. 1647, Ottapalam, Palakkad District, Kerala; and Rs 10 lakh on The Darussalam Co-operative Urban Bank, Hyderabad, Telangana.
The NPA rate at 4.8% for borrowers who availed ECLGS facility is also lower than that of the borrowers who were eligible but did not avail the facility (6.1%), according to a report published by TransUnion CIBIL.
"There is no definite timeline for setting up of the fraud registry. At present, we are talking to different stakeholders including different departments like payments and settlement and supervision of RBI," RBI executive director Anil Kumar Sharma revealed.
Though asset quality of banks has continued to improve 67% of those surveyed reporting a drop in NPAs over the last six months, some sectors like textiles, infrastructure, retail, food processing, metals and iron and steel continue to show high level of NPAs.
Through this association, Mahindra Finance would now leverage an automated decisioning platform StrategyOne – A Forrester rated Enterprise Business Rules Engine provided by CRIF – to integrate its customer acquisition channels across multiple retail asset product lines. This association is expected to facilitate quicker loan approval decisions, by combining automation and risk analysis.
The Central Board of Direct Taxes (CBDT) have asked the taxpayers to file ITR-U if they have won money in online games in FY 2019-20 and Fy 2020-21. If the income tax department later traces such income, such taxpayers will face consequences of a penalty and other legal actions under income tax laws.
HIT is KKR’s third InvIT in India, in addition to Virescent Renewable Energy Trust- India’s first renewable energy InvIT, and India Grid Trust, a transmissions InvIT. Together, these platforms operate and manage 33 assets valued at over $3.8 billion across 22 states or union territories across India.
Sudhir Kaushik of Taxspanner.com tells readers how they can optimise their tax by rejigging their income and investments.
Currently, Axis Bank and its two subsidiaries - Axis Capital Ltd and Axis Securities Ltd - collectively own 12.99 per cent of Max Life Insurance post approval of the deal in April last year. Under the deal, the Axis entities also have the right to acquire an additional stake of up to seven per cent in Max Life, in one or more tranches, subject to regulatory approvals.
IDBI Trusteeship Services Limited acting in its capacity as a debenture trustee on behalf of Credit Suisse, had invoked the pledge of Reliance Capital's 100 per cent shareholding in Reliance General in November 2019 and transferred the shares to its account.
India's digital lending market has grown quickly and facilitated $2.2 billion in digital loans in 2021-22, with startups attracting foreign backers and giving traditional banks a run for their money in the credit business.
The proposed scheme of amalgamation envisages merger of both the transferor companies with and into transferee company HDFC Capital Advisors and the dissolution of the transferor companies without being wound up.
While the CBDT had issued a set of guidelines in June with regard to the applicability of the newly introduced section 194R in the Income Tax Act, the banking sector had specific concerns with regard to their businesses and operations.
Insurance penetration is expected to increase in the coming years owing to multiple factors that include changing consumer perception and realisation of financial security, the easing of IRDAI regulation regarding product approval and distribution, customization in products, balanced channel mix, and digitization efforts at the company level.
India is considering selling at least 51% of the $5 billion bank, people familiar with the matter have said, in what is set to be the biggest sale of the government’s stake in a lender in decades.
At present, any one of the six documents-passport, Aadhaar, voter's identity card, NREGA card, PAN card or driving licence-is required towards proof of identity and proof of address to open a bank account. It becomes difficult to trace multiple accounts of an individual if they are not linked and are opened with different KYC documents.
The Reserve Bank of India (RBI) on Thursday said the first quarter of FY23 saw listed private non-financial companies log 41 per cent sales growth.
Bank credit growth accelerated to 14.2 per cent in the quarter ended June 2022 from 6 per cent in the same period of the previous year, RBI data showed on Thursday. In June 2022, C-D ratio stood at 73.5 per cent at all-India level (70.5 per cent a year ago) and 86.2 per cent for metropolitan branches of banks (84.3 per cent a year ago).
Saikat Mitra, Senior Director and Head of Trust and Safety, Google APAC (Asia Pacific region) said the company is commited to complying with regulations in all jurisdictions it operates in, and termed online harm as a "global phenomenon".
It solicits public views on what could be the best way forward to evolve a framework that is convenient, safe and affordable for users, reasonably covers the costs of running reliable systems, and incentivises private operators to do business at a time digital transactions in the country are at a record high.
It is in the interest of existing lenders to provide interim finance since they would benefit in getting an improved resolution amount being high of the waterfall priority, observed Ravi Mittal, chairman of IBBI, in a quarterly update released early this week.
The insurers have been told by Irdai that their commission and remuneration payout should be based on a board-approved policy which will be reviewed on a yearly basis. No commission shall be payable to insurance agents or the insurance intermediaries in the direct business, and the insurers must grant discounts on the premium.
Derivatives and repo markets could well play a role in aiding the corporate bond market to gain momentum as those are billed as popular hedging tools for sophisticated investors betting on bonds sold by companies. "Beyond this, market development and improvements will remain a continuous exercise," he said.
"Considering the bank's present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits...," it said.
The partnership will give MaW dealers selling electric 2-wheeler & 3-wheeler vehicles, an access to various insurance products offered by MIBL’s insurance partners. The customers can effectively compare and select an insurance cover that meets their individual and specific requirements.
Officials in the government and the state-backed Life Insurance Corp. of India, which together own about 94% of IDBI Bank’s shares, are in talks about how much of their stakes they plan to sell, the people said. Both parties are expected to retain a stake in the lender after the sale, the people said, asking not to be identified as the information is confidential.
The Financial Services Institution Bureau (FSIB) has selected 14 candidates for the executive director (ED) post at the public sector banks, according to a notification issued by the bureau. The highest number of candidates were selected from the Bank of Baroda followed by Punjab National Bank.
Mithani, who was serving as the interim Chief Financial Officer and Key Managerial Personnel of the company, has been relieved from the responsibilities with effect from August 23, 2022.
Commercial banks net credit to the real estate sector witnessed 3.5 times growth during 2021, as compared to the pandemic period, shows the Reserve Bank of India's data on sectoral lending.
“This move will particularly help both financial and non financial services Indian players to make overseas investment in Indian IFSC and develop new line of business” said Dipesh Shah, Executive Director at International Financial Services Centre Authority.
Triggered by aggressive rate hike by the US federal reserve on the back of roaring inflation led to the FII sell - off in Indian equity markets. Read to know more
ABHA is the first step toward creating safe and secure digital health records. While it is optional, having an ABHA number helps users access and share personal health records digitally, allowing users to receive their digital lab reports, diagnosis, prescriptions, etc., from Ayushman Bharat Digital Mission (ABDM) registered healthcare providers and doctors anywhere in the country in a paperless manner.
The expansion of bank loans has consistently outpaced the expansion of bank deposits by a wide margin. Low base effect, small ticket size loans, higher working capital requirements due to elevated inflation, and a shift to bank borrowings on account of strong rates in the capital market have all contributed to the recent acceleration in credit growth. According to the Reserve Bank of India, bank credit has increased by more than 14% annually.
RBI extended the tokenisation deadline by three months starting July. This extended time period may be used to create public awareness about the process of creating tokens and in facilitating the stakeholders to be ready for handling such transactions.
As majority of the bonds in FY’2017 included a call option in the fifth-year, the issuances in FY’2022 were driven by the refinancing obligations of such issues, the ratings firm said. Net of new offerings and redemptions between April and July 2022, the AT-I bonds outstanding on July 31, 2022, were Rs. 1.02 lakh crore.
In FY22, a majority of the funds raised through the instrument were to refinance bond issues done in FY17, Icra Ratings said in the report on Monday. Majority of the bonds have a call option in the fifth year, resulting in the significant jump in new issuances which are basically for refinancing the earlier obligations.
Bajaj Housing Finance hiked its rate by 0.50 per cent, and the lowest priced product for the salaried and professional applicants will be 7.70 per cent now, as per an official statement. Despite the latest hike, the company claimed to be offering loans at competitive rates compared to most of its peers.
"Banks are not raising deposit rates, as they are able to get funds easily from money market by issuing CDs, and that too cheaply, and they may continue to opt for this route of fundraising for next few weeks," said Raju Sharma, head of fixed income at IDBI Mutual Fund.
"During Covid, there was some slow down in growth because we had tightened the criteria. We didn't want to take more risks. Now, as we see things opening up, credit demand is picking up. Customers, particularly large corporates, are shifting to banks for their credit requirement, as opposed to other forms of borrowing."