“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.”
"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.
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.
The government has notified an amendment to the central goods and services tax Act to provide for additional time for claiming input tax credit, issuance of credit notes, rectification of errors and extending the last date of September 30. The due date of issuance of credit notes and declaration in the returns has also been extended to November 30.
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.
The decision came at a meeting convened by finance minister Nirmala Sitharaman with 12 public sector banks on Tuesday. The directives followed an extensive review of 6 public sector banks conducted by National Commission for Scheduled Castes (NCSC).
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.
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.
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.
Tokenisation is a process by which card details are replaced by a unique code or token, generated by an algorithm, allowing online purchases without exposing card details, in a bid to improve data security.
The Reserve Bank on Wednesday notified that the share of industrial loans in total credit has been gradually declining over the last decade while that of personal loans is on the rise.
"India is one of the fastest growing economies in the world. With the digital innovation, growing consumer demand, continuous government and regulatory support amongst other factors, India is well placed to grow not only in Asia but also across the globe."
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.
Eneva Brazil has given the highest offer of ₹2,800 crore, or the equivalent of $350 million, which is about 9% of claims, one of the persons said. Twin Star Overseas, owned by billionaire Anil Agarwal of Vedanta, has offered ₹1,200 crore or $150 million, which is about 4% of the claim amount, the same person said.
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.
The bank said its shareholding in the company will be 5.56 per cent of the total shareholding in ONDC as on September 27, 2022. In absolute terms, it has acquired 10,00,000 equity shares for Rs 100 each in the to-be operational digital commerce company, incorporated in December 2021.
PIRAMAL-India's shadow lender Piramal sees no slowdown in credit growth.
The development underscores private lenders' growing interest in India's lucrative and largely untapped insurance sector. The country's biggest private lender HDFC Bank also announced plans to buy a 9.94% stake in Go Digit Life last month. Digit, which already has a presence in the general insurance business, is foraying into the life insurance segment with its Go Digit Life venture but has not yet received a licence for the unit.
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.
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.
This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI, the RBI said.
India is witnessing rapid growth in consumer spending and by 2026, it is expected that two out of every three transactions will be via digital modes of payments, Axis Bank Managing Director and Chief Executive Officer Amitabh Chaudhry said.
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.
"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.
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.
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.
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).
Both the parties have last week signed a definitive agreement towards this merger and are now awaiting IRDA's approval for the same, three people familiar with the matter said.
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.
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.
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.
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.
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.
He also said that there is also a push towards the digital route, adding that new-age banking using technology has increased.
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.
"In light of the recent tragic incident, we have stopped third-party repossessions and will further examine whether and how third-party agents will be used in the future," Ramesh Iyer, Vice Chairman and Managing Director, Mahindra Finance, said in the statement.
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.
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.
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.
"We are aiming to reduce gross NPA below 10% by December this year," managing director MV Rao told ET, barely two days after Reserve Bank of India lifted the business restrictions on the bank under the prompt corrective action framework.
The Mastercard Payments Summit will see thought leaders talk about futuristic solutions that can drive innovation in the industry and pave the path for a stronger digital economy.
Crisil expects slippages to trend 50 bps ( one bps os 0.03 percent) lower at 2.0% for fiscal 2024 versus 2.5% last fiscal as the economy stabilises. This should support asset quality metrics even as the pace of write-offs, which contributed almost 60% to the reduction in gross NPAs in the past three fiscals, and large-ticket resolutions decelerate.
Private sector lender Axis Bank on Wednesday said government mandates on the payments space ensure that no one can make money in the segment. The bank's chief executive and managing director Amitabh Chaudhry feared that smaller entities will not be able to survive amid such diktats.
British International Investment, the development financial institution of the UK government, will be investing $9.2 million in the NBFC-MFI. In parallel, NMI will raise its holding by another $7.9 million investment while Triple Jump will put in $5.4 million and Incofin $2 million, people familiar with the development said.
HDFC-BANK-DEAL-India's HDFC Bank signs multi-year data and technology deal with Refinitiv
Indian banks are expected to witness a 90 basis points fall in gross non-performing assets (NPAs) to 5% in this fiscal year to March and further improve to 4% by end of March 2024, said rating agency Crisil on Wednesday.